By Rebecca Melvin
New York, May 9 - TTM Technologies Inc. priced an upsized $155 million of seven-year convertible senior notes after the market close Thursday at par to yield 3.25% with an initial conversion premium of 27.5%, the company said Friday.
There is a $20 million over-allotment option.
Originally, the off-the-shelf offering was expected to be for $125 million with an additional $18.75 million of notes to cover over-allotments. The deal priced at the midpoint of talk.
Joint bookrunners are J.P. Morgan Securities Inc. with 60% of the economics and UBS Investment Bank with 40%. There are no calls or puts.
Proceeds are expected to be used to repay a term loan under the company's senior credit facility in full and for general corporate purposes, including potential acquisitions.
TTM also expects to enter into convertible note hedge transactions in connection with the offering aimed at reducing potential dilution of the stock upon conversion of the notes.
TTM will also enter into warrant transactions concurrently with the offering, which could result in additional proceeds to TTM. A portion of net proceeds will be used to pay the cost of the convertible note hedge transactions. This cost will be partially offset by proceeds that TTM expects to receive from the sale of the warrants.
TTM expects to use a portion of proceeds to pay the net cost of the convertible note hedge transactions and warrant transactions.
TTM is a Santa Ana, Calif.-based maker of printed circuit board, or PCBs.
| Issuer: | TTM Technologies Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $155 million
|
| Greenshoe: | $20 million
|
| Maturity: | May 15, 2015
|
| Bookrunners: | J.P. Morgan Securities Inc. and UBS Investment Bank
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Conversion premium: | 27.5%
|
| Conversion ratio: | 62.6449
|
| Conversion price: | $15.96
|
| Call option: | Non-callable
|
| Put option: | None
|
| Pricing date: | May 8
|
| Settlement date: | May 14
|
| Distribution: | Registered, off the shelf
|
| Price talk: | 3%-3.5%, up 25%-30%
|
| Stock symbol: | Nasdaq: TTMI
|
| Stock price: | $12.52 at close May 8
|
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