Wesco's planned $125 million of convertibles talked to yield 2.375% to 2.625%, up 35% to 37%

By Rebecca Melvin

Princeton, N.J., Sept. 21 - Wesco International Inc.'s planned offering of $125 million of 20-year convertibles are talked to yield 2.375% to 2.625%, with an initial conversion premium of 35% to 37%, according to syndicate price talk that was released Wednesday.

Bookrunners for the convertible senior debentures, set to price Thursday after the close, are Goldman Sachs & Co. and Lehman Brothers.

The Rule 144A deal of convertible debentures with $25 million greenshoe is being offered concurrently with an offering of $150 million of 12-year notes. Those notes were talked to yield 7 1/8% to 7 3/8% on Wednesday.

The convertible debentures will be guaranteed on a senior subordinated basis by Wesco Distribution, and the senior subordinated notes due 2017, to be issued by Wesco Distribution, will be guaranteed by Wesco International on a senior basis.

Proceeds from the offerings, along with borrowings under credit facilities and cash on hand, will be used to redeem the remaining $199.7 million principal amount of Wesco Distribution's 9.125% senior subordinated notes due 2008, and to help finance Wesco Distribution's acquisition of Carlton-Bates Co., which was previously announced.

Wesco is a Pittsburgh-based provider of electrical construction products and electrical and industrial maintenance, repair and operating supplies.

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