By Kenneth Lim
Boston, Dec. 15 - Tech Data Corp. on Friday priced $325 million of 20-year convertible senior debentures at talk, at a coupon of 2.75% and an initial conversion premium of 35%, and reoffered at 98.25.
There is an over-allotment option for a further $25 million.
Banc of America was the bookrunner for the overnight registered off-the-shelf offering.
The debentures are non-callable for the first five years, and may be put in years five, 10 and 15.
The debentures have a contingent conversion hurdle at 135% of the conversion price, and a contingent payment hurdle at 120% of the principal.
There is dividend and takeover protection.
The convertibles have a net-share settlement feature.
Tech Data, a Clearwater, Fla.-based distributor of information technology products and logistics management services, said it will use the proceeds of the deal to retire short-term debt and for general purposes.
| Issuer: | Tech Data Corp.
|
| Issue: | Convertible senior debentures
|
| Bookrunner: | Banc of America
|
| Amount: | $325 million
|
| Greenshoe: | $25 million
|
| Maturity: | Dec. 15, 2026
|
| Coupon: | 2.75%
|
| Price: | Par, reoffered at 98.25
|
| Yield: | 2.75%
|
| Conversion premium: | 35%
|
| Conversion price: | $54.26
|
| Conversion ratio: | 18.4310
|
| Contingent conversion: | 135%
|
| Contingent payment: | 120%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Dec. 20, 2011
|
| Puts: | Dec. 15, 2011; Dec. 15, 2016; Dec. 15, 2021
|
| Price talk: | 2.75%, up 35%
|
| Pricing date: | Dec. 15 before the open
|
| Settlement date: | Dec. 20
|
| Distribution: | Registered
|
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