Standard Pacific to price $150 million 20-year convertibles at 1.125%-1.625%, up 37.5%-42.5%

By Rebecca Melvin

New York, July 31 - Standard Pacific Corp. planned to price $150 million of 20-year convertible senior notes after the market close on Tuesday that were talked to yield 1.125% to 1.625% with an initial conversion premium of 37.5% to 42.5%, according to market sources.

The registered deal has an over-allotment option for the underwriters to purchase up to an additional $22.5 million of notes.

Standard Pacific also plans to offer 12.5 million shares of its common stock, 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.

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.

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