Notes convertible at 50.2008 shares per $1,000 principal amount
By Rebecca Melvin
New York, June 18 – AV Homes Inc. has priced $80 million of 6% convertible senior notes due 2020 that is being issued through a series of private agreements, according to a news release.
The notes will be convertible at the option of the holder at any time at an initial conversion rate of 50.2008 shares per $1,000 principal amount.
A portion of proceeds will be used to repurchase about $34 million of the company’s outstanding 7.5% senior exchange convertible note due 2016 issued on July 25, 2012 and about $10 million principal amount of 7.5% convertible senior notes due 2016 issued in early 2011.
The notes are non-callable.
AV Homes is a Kissimmee, Fla.-based homebuilder.
| Issuer: | AV Homes Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $80 million
|
| Maturity: | July 1, 2020
|
| Coupon: | 6%
|
| Price: | Par of $1,000
|
| Yield: | 6%
|
| Initial conversion premium: | 20%
|
| Initial conversion price: | $19.92
|
| Initial conversion ratio: | 50.2008 shares per $1,000 of notes.
|
| Calls: | Non-callable
|
| Pricing date: | June 17
|
| Settlement: | June 23
|
| Stock symbol: | Nasdaq: AVHI
|
| Stock reference price: | $16.60, as of close June 17
|
| Market capitalization: | $330.6 million
|
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