By Kenneth Lim
Boston, June 12 - Molson Coors Brewing Co. priced $500 million of six-year convertible senior notes on Monday within talk to yield 2.5% with an initial conversion premium of 25%.
The convertibles were offered at par and priced after the market closed. The deal was talked at a coupon of 2.375% to 2.875% and an initial conversion premium of 22.5% to 27.5%.
There is an over-allotment option for a further $75 million.
Citigroup and Deutsche Bank were the bookrunners of the registered offering.
The convertibles are non-callable and may not be put.
There is a contingent conversion trigger at 130% of the conversion price.
The convertibles have dividend and takeover protection.
There is a net-share settlement feature.
Molson Coors, a Golden, Colo.-based brewing company, said it will use $397 million of the proceeds to partly fund subsidiary Coors Brewing Co.'s cash tender offer to redeem $450 million of 6.375% senior notes due 2012. That tender offer was announced Monday and expires July 10. Another $45 million of the proceeds will fund convertible note hedge and warrant transactions while a further $50 million will fund a voluntary pension contribution.
| Issuer: | Molson Coors Brewing Co.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Citigroup and Deutsche Bank
|
| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | July 30, 2013
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 25%
|
| Conversion price: | $109.51
|
| Conversion ratio: | 9.1316
|
| Contingent conversion: | 130%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 2.375%-2.875%, up 22.5%-27.5%
|
| Pricing date: | June 11, after the close
|
| Settlement date: | June 15
|
| Distribution: | Registered
|
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