By Rebecca Melvin
New York, March 13 - ModusLink Global Solutions Inc. priced an upsized $90 million of five-year convertible senior notes at par before the market open Thursday to yield 5.25% with an initial conversion premium of 23%, according to market sources.
The Rule 144A deal was initially talked at $75 million in size. Pricing came at the cheap end of talk, which was for a 5% to 5.25% coupon and a 23% to 25% premium.
BofA Merrill Lynch was the bookrunner.
There is a $10 million greenshoe, which was downsized from $11.25 million.
ModusLink can force conversion after March 6, 2017 if the stock trades at or above 130% of the conversion price. There are no puts.
The bonds have takeover and dividend protection, and they will be stock settled unless the company receives shareholder approval for flexible settlement.
Proceeds are for general corporate purposes, which may include potential acquisitions and other strategic business opportunities. No material acquisitions are probable at this time.
Waltham, Mass.-based ModusLink is a supply chain and business process management services provider.
| Issuer: | ModusLink Global Solutions Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $90 million, upsized from $75 million
|
| Greenshoe: | $10 million, downsized from $11.25 million
|
| Maturity: | March 1, 2019
|
| Bookrunner: | BofA Merrill Lynch
|
| Coupon: | 5.25%
|
| Price: | Par
|
| Yield: | 5.25%
|
| Conversion premium: | 23%
|
| Conversion price: | $6.01
|
| Conversion ratio: | 166.2593 shares
|
| Mandatory conversion: | After March 6, 2017 potentially if shares are at least 130% of the conversion price
|
| Puts: | No
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Price talk: | 5%-5.25%, up 23%-25%
|
| Pricing date: | March 13
|
| Settlement date: | March 18
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: MLNK
|
| Stock price: | $4.89 at close March 12
|
| Market capitalization: | $215 million
|
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