Millennium Chemicals prices $125 million convertibles to yield 4%, up 42%

New York, Nov. 19 - Millennium Chemicals priced its offering of $125 million convertible senior debentures due 2023 to yield 4% with a 42% initial conversion premium after the close Wednesday.

The deal priced considerably more aggressive than talk, which had put the offering yielding 4.25% to 4.75% with a 35% to 40% initial conversion premium.

Joint bookrunners for the Rule 144A sale were JPMorgan Securities and Banc of America Securities.

The deal has a $25 million greenshoe.

The conversion price is $13.63, equivalent to 73.3568 shares per $1,000 principal amount. Conversion is subject to a contingent conversion feature at 125%.

The convertibles are callable after seven years and putable at seven, 10 and 15 years.

The Hunt Valley, Md. chemical company will use proceeds to repay the remaining balance of its term loan facility and to reduce borrowings under its revolving credit facility.

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