Published on 12/8/2006 in the Prospect News Convertibles Daily.
New Issue: Prudential prices $2 billion 30-year convertibles at Libor minus 240 bps, up 20%
By Kenneth Lim
Boston, Dec. 8 - Prudential Financial Inc. on Friday priced $2 billion of 30-year convertible senior notes at talk, at a coupon of three-month Libor minus 240 basis points, an initial conversion premium of 20% and a reoffered price of 99.25.
There is an over-allotment option for a further $300 million.
Citigroup and Morgan Stanley were the bookrunners of the overnight Rule 144A offering.
The convertibles are non-callable for the first year. They may be put in years one, two, three, four, five, 10, 15, 20 and 25.
The notes have dividend and takeover protection.
Prudential, a Newark, N.J.-based insurance and investment company, said it will use the proceeds to buy back up to $205 million of its common stock from purchasers of the convertibles. It will also use the proceeds to buy an investment-grade fixed-income investment portfolio and for general purposes.
| Issuer: | Prudential Financial Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Citigroup and Morgan Stanley
|
| Amount: | $2 billion
|
| Greenshoe: | $300 million
|
| Maturity: | Dec. 12, 2036
|
| Coupon: | Three-month Libor minus 240 bps
|
| Price: | Par, reoffered at 99.25
|
| Yield: | Three-month Libor minus 240 bps
|
| Conversion premium: | 20%
|
| Conversion price: | $104.21
|
| Conversion ratio: | 9.5962
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Dec. 13, 2007
|
| Puts: | Dec. 13, 2007; Dec. 13, 2008, Dec. 13, 2009; Dec. 13, 2010; Dec. 13, 2011; Dec. 13, 2016; Dec. 13, 2021; Dec. 13, 2026; Dec. 13, 2031
|
| Price talk: | Three-month Libor minus 240 bps, up 20%, reoffered at 99.25
|
| Pricing date: | Dec. 8, before the open
|
| Settlement date: | Dec. 12
|
| Distribution: | Rule 144A
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