Nashville, April 16 - Shuffle Master Inc. sold an upsized $125 million of 20-year convertible notes at par to yield 1.25% with a 37% initial conversion premium via sole bookrunner Deutsche Banc Securities.
The Rule 144A deal, upped from $100 million, priced at the aggressive end of price talk for a 1.25% to 1.75% coupon and a 33% to 37% initial conversion premium.
Holders will have full dividend protection.
The Las Vegas-based company, which supplies automatic card shufflers and special gaming tables to casinos, used $57.5 million of proceeds to buy back stock sold short by convertible buyers. Some $20 million was earmarked to finance an initial cash payment for its previously announced acquisition of Casinos Austria Research and Development GmbH.
Remaining proceeds will be used for general corporate purposes, including acquisitions and additional repurchases of common stock.
On Friday, Shuffle Master was distributing a 3-for-2 stock split to holders of record April 5. The split was announced in mid-March.
Terms of the deal are:
| Issuer: | Shuffle Master Inc.
|
| Issue: | Convertible senior unsecured notes
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| Bookrunner: | Deutsche Banc Securities
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| Co-manager: | Goldman Sachs & Co.
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| Amount: | $125 million, up from $100 million
|
| Greenshoe: | $25 million, up from $20 million
|
| Maturity: | April 15, 2024
|
| Coupon: | 1.25%
|
| Price: | Par
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| Yield: | 1.25%
|
| Conversion premium: | 37%
|
| Conversion price: | $42.17 post-split, $63.17 pre-split
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| Conversion ratio: | 23.75 post-split, 15.83 pre-split
|
| Contingent conversion: | 120%
|
| Call: | Non-callable for 5 years
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| Put: | In years 5, 10 and 15, at par
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| Price talk: | 1.25%-1.75%, up 33%-37%
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| Pricing date: | April 15, after the close
|
| Settlement date: | April 21
|
| Distribution: | Rule 144A
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