By Evan Weinberger
New York, Nov. 20 - Wright Medical Group Inc. priced an upsized $175 million in 2.625% convertible senior notes due Dec. 1, 2014 with an initial conversion premium of 25% Monday after the market close.
The convertibles were originally announced at a principal amount of $150 million. The coupon came in within talk, which had been 2.25% to 2.75%, and the initial conversion premium came in at the middle of talk, which was 22.5% to 27.5%.
JPMorgan is the bookrunner of the registered transaction. Piper Jaffray & Co. and Wachovia Capital Markets, LLC are co-managers.
The convertibles have an upsized $25 million over-allotment option. The greenshoe was originally announced at $22.5 million.
The settlement date is expected to be Nov. 26.
The conversion price is $32.65 and the conversion ratio is 30.6279.
The convertibles have a soft call subject to a 140% hurdle beginning Dec. 6, 2011. They also have fundamental change protection.
Wright Medical is an Arlington, Tennessee-based orthopedic and medical products producer that focuses on reconstructive joint devices. The company plans to use the proceeds for general corporate purposes.
Issuer: Wright Medical Group Inc.
Issue: Convertible senior notes
Amount: $175 million
| Greenshoe: | $25 million
|
| Maturity: | Dec. 1, 2014
|
| Coupon: | 2.625%
|
| Price: | Par
|
| Yield: | 2.625%
|
| Conversion premium: | 25%
|
| Conversion price: | $32.65
|
| Conversion ratio: | 30.6279
|
| Soft call: | | Beginning Dec. 6, 2011 subject to 140% hurdle
|
| Bookrunner: | JPMorgan
|
| Pricing date: | Nov. 19, after close
|
| Settlement date: | Nov. 26
|
| Talk: | 2.25%-2.75% coupon, 22.5%-27.5% conversion premium
|
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