By Jennifer Chiou and Rebecca Melvin
New York, July 31 - Standard Pacific Corp. announced the pricing of its upsized $220 million offering of 20-year convertible senior note with an initial conversion premium of 42.5%. The deal was previously raised to $200 million from $150 million.
The notes will pay semiannual interest of 1.25%, in the middle of the revised 1.125% to 1.375% talk.
The original talk on terms was for a 1.125% to 1.625% coupon and a 37.5% to 42.5% premium.
The registered deal has an over-allotment option for the underwriters to purchase up to an additional $33 million - up from $22.5 million - of notes.
Standard Pacific also priced an offer of 12.5 million shares of its common stock at $5.67 apiece, with an option for underwriters to purchase up to an additional 1,875,000 common shares.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are the joint bookrunners of both offerings.
The convertible notes are non-callable until Aug. 5, 2017, with put dates in years five, 10 and 15. Upon conversion, the notes will be settled with shares.
The notes are convertible into shares at an initial conversion rate of 123.7662 shares per $1,000 principal amount of notes, equal to a conversion price of $8.08 per share.
There is a change-of-control make whole, anti-dilution adjustments and dividend protection.
Proceeds will be used for general corporate purposes, including land acquisition and development, home construction, and other related purposes. The stock and convertibles offerings are not conditioned on each other.
Standard Pacific is an Irvine, Calif.-based builder of single-family attached and detached homes.
| Issuer: | Standard Pacific Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $220 million, upsized from original $150 million
|
| Greenshoe: | $33 million, upsized from $22.5 million
|
| Maturity: | 2032
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch
|
| Coupon: | 1.25%
|
| Price: | Par
|
| Yield: | 1.25%
|
| Conversion premium: | 42.5%
|
| Conversion price: | $8.08
|
| Conversion ratio: | 123.7662 shares
|
| Pricing date: | July 31
|
| Settlement date: | Aug. 5
|
| Unit symbol: | NYSE: SPF
|
| Unit price: | $5.67 at close July 17
|
| Market capitalization: | $1.13 billion
|
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