Assured Guaranty prices $150 million convertibles at 8.5%, up 17.5%

New York, June 18 - Assured Guaranty Ltd. priced $150 million of mandatory convertible equity units after the market close Thursday to yield 8.5% with a 17.5% initial conversion premium.

The deal came at the cheap end of talk for a yield of 8% to 8.5% with an initial conversion premium of 17.5% to 22.5%.

The threshold appreciation price is $12.93.

Assured also priced 38.5 million shares at $11.00 each for a total of $423.5 million, upsized from $400 million. There is a greenshoe for a further 5.775 million shares.

The mandatories, with a price of $50 per unit, will mature June 1, 2012.

There is a greenshoe for an additional $22.5 million of convertibles.

Banc of America Securities LLC is the bookrunner for the registered offering.

Assured is a Hamilton, Bermuda, provider of credit enhancement for municipal finance, structured finance and mortgage markets.

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