By E. Janene Geiss
Philadelphia, Sept. 25 - Standard Pacific Corp. priced $100 million in 6% convertible subordinated notes due Oct. 1, 2012 with a 24.11% initial conversion premium Tuesday before market open.
The convertibles were offered at the rich end of talk, which had the coupon at 6% to 6.5% and conversion premium at 20% to 25%.
There is a $15 million over-allotment option.
Credit Suisse Securities, Banc of America Securities and JPMorgan Securities are joint bookrunners of the registered transaction.
Standard Pacific also entered into a 7,839,809 million share lending agreement with an affiliate of Credit Suisse concurrently with the convertibles offering.
The notes are convertible beginning Jan. 1, 2008 subject to a 130% contingent conversion hurdle. They carry fundamental change protections and a net-share settlement agreement.
There are not puts and no calls.
Standard Pacific is an Irvine, Calif.-based homebuilder.
The company plans to use the proceeds to repay a portion of its outstanding debt under its revolving credit facility and $9.12 million to fund convertible hedge transactions. The hedge transactions raise the effective conversion price from the company's perspective to $10.85 or a 53.9% premium.
Issuer: Standard Pacific Corp.
Issue: Convertible subordinated notes
Amount: $100 million
Greenshoe: $15 million
Maturity: Oct. 1, 2012
Coupon: 6%
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | $8.75
|
| Conversion premium: | 24.11%
|
| Contingent conversion: | From Jan. 1, 2008 subject to 130% hurdle
|
| Call: | Non-callable
|
| Put: | None
|
| Bookrunners: | Credit Suisse, Banc of America Securities, JPMorgan Securities
|
| Distribution: | Off shelf
|
| Pricing date: | Sept. 24, after close
|
| Settlement: | Sept. 28
|
| Talk: | 6%-6.5% coupon, 20%-25% conversion premium
|
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