By Rebecca Melvin
New York, June 5 - Western Refining Inc. priced an upsized $200 million of five-year convertible notes after the market close on Thursday at par to yield 5.75% with a 20% initial conversion premium.
The offering was doubled from an initially expected $100 million size, and pricing came at the midpoint of talk, which was 5.5% to 6% for the coupon, with an initial conversion premium of 17.5% to 22.5%.
Western Refining also priced an upsized 20 million shares of common stock at $9.00 a share. Initially 14 million shares of common stock were going to be priced.
Merrill Lynch & Co. and Goldman, Sachs & Co. were acting as joint bookrunners for both registered offerings.
The greenshoe for the notes was upsized to $30 million from $15 million.
Proceeds from the offerings will be used to repay debt under the company's term loan credit agreement.
El Paso, Texas-based Western is an independent refining and marketing company.
| Issuer: | Western Refining Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $200 million, upsized from $100 million
|
| Greenshoe: | $30 million, upsized from $15 million
|
| Maturity: | June 15, 2014
|
| Bookrunners: | Merrill Lynch & Co. and Goldman Sachs & Co.
|
| Concurrent stock offering: | 20 million of common stock at $9.00 a share
|
| Coupon: | 5.75%
|
| Price: | Par
|
| Yield: | 5.75%
|
| Conversion premium: | 20%
|
| Conversion price: | $10.80
|
| Conversion ratio: | 92.5926
|
| Price talk: | 5.5%-6%, up 17.5%-22.5%
|
| Calls: | Non-callable
|
| Puts: | Fundamental change
|
| Pricing date: | June 4, after the close
|
| Settlement date: | June 10
|
| Distribution: | Registered
|
| Stock symbol: | NYSE: WNR
|
| Stock reference: | $9.00
|
| Last stock sale price: | $9.50
|
| Market capitalization: | $590 million
|
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