New Issue: School Specialty sells upsized $110 million convertible at 3.75%, up 36.33%

By Ronda Fears

Nashville, July 15 - School Specialty Inc. priced $100 million of 20-year convertible notes at par to yield 3.75% with a 36.33% initial conversion premium, via lead manager Citigroup.

The issue sold at the cheap end of price talk which put the yield at 3.25% to 3.75% with a 36% to 40% initial conversion premium.

School Specialty said it would use proceeds to refinance bank debt and general corporate purposes.

Terms of the new deal are:

Issuer: School Specialty Inc.

Issue:	Convertible subordinated notes
Lead managers:		Citigroup
Amount	$110 million, up from $100 million
Greenshoe:	$25 million, unchanged
Maturity:	Aug. 1, 2023
Coupon:	3.75%
Price:	Par
Yield:	3.75%
Conversion premium:	36.33%
Conversion price:	$40.00
Conversion ratio:	25.00
Call:	Non-callable for 5 years
Put:	in years 7, 10 and 15
Contingent conversion:	120%
Contingent payment:	120%
Rating:	S&P: B+
Price talk:	3.25-3.75%, up 36-40%
Pricing date:	July 14, after the close
Settlement:	July 18
Distribution:	Rule 144A

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.