Triumph issues $201.25 million of 2.625% convertibles, including greenshoe

By Laura Lutz

Des Moines, Sept. 22 - Triumph Group, Inc. completed a previously announced $201.25 million offering of 2.625% convertibles, according to an 8-K filing with the Securities and Exchange Commission.

The deal priced on Sept. 12 as a $175 million offering with a $26.25 million greenshoe for underwriter Bank of America.

The convertibles have a maturity of 20 years. They have an initial conversion rate of 18.3655 shares per note, or an initial conversion price of $54.45 per share.

The notes are non-callable for the first five years, with puts in years five, 10 and 15.

There is a contingent conversion hurdle at 130% of the conversion price, and contingent payment at 120% of the principal.

The convertibles have dividend and takeover protection.

There is a net-share settlement feature.

Triumph, a Wayne, Pa.-based maker of aircraft components, will use the proceeds of the deal to prepay its existing class A and B senior notes due 2012 and to repay part of a revolving credit line. Triumph said part of the reason for paying down that debt was to remove covenants in the senior notes that would give the company more flexibility in making acquisitions.

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