By Ronda Fears
Nashville, Tenn., Dec. 5 - Tech Data Corp. sold $250 million of 20-year convertible subordinated debentures at par to yield 2.0% with a 25% initial conversion premium in the Rule 144A market, via book-running lead manager Salomon Smith Barney.
The issue sold in the middle of yield guidance that put the coupon between 1.625% and 2.125%, and at the cheap end of premium price talk of a range of 25% to 27%.
Clearwater, Fla.-based Tech Data, which provides IT products, logistics management and other services, said it intends to use proceeds to reduce indebtedness under its revolving credit loans and for general corporate purposes.
Terms of the new deal are:
Issuer: Tech Data Corp.
Amount: $250 million
Greenshoe: $50 million
Lead Manager: Salomon Smith Barney
Maturity Date: Dec. 15, 2021
Coupon: 2.0%
Issue Price: par
Yield: 2.0%
Conversion Premium: 25%
Conversion Price: $59.525
Conversion Ratio: 16.7997
Call: non-callable for four years, then at par
Put: at par, in years four, eight, 12 and 16
Contingent Conversion: 120% declining to 110% at maturity
Expected ratings: Moody's: Ba3
| S&P: BB+
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| Settlement Date: | Dec. 10
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