S.T. Dupont convertibles talked at 6.75%-7.25%, up 37-42%

New York, Dec. 9 - S.T. Dupont is planning to sell 3.25 million convertible bonds in the Oceanes structure with talk putting the yield at 6.75% to 7.25% with a 37% to 42% initial conversion premium.

Based on S.T. Dupont's closing stock price of €4.75 on Dec. 5, the issue will be sized at €21.1 million to €21.9 million.

Pricing is expected on Dec. 11. Up to that point, the bonds will be marketed to institutional investors and existing shareholders of the company. A three-day public offering in France will follow. Settlement is scheduled for Dec. 24.

Barclays Capital is bookrunner.

The convertibles will have a five-year maturity and will be redeemable at par. They will be callable from Dec. 24, 2006 onward at par subject to a 130% hurdle.

S.T. Dupont will have the option to settle up to 35% of any conversion in cash.

The Paris luxury goods company will use proceeds to refinance its existing convertibles, which mature in April, and to finance ongoing activities, investments in expanding S.T. Dupont's brand and for acquisitions.

The convertibles are not being publicly offered in the United States and are only being sold to professional and high net worth investors in the United Kingdom.

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