By Rebecca Melvin
New York, May 13 - Wyndham Worldwide Corp. priced $200 million of three-year convertible notes after the close Wednesday to yield 3.5% with an initial conversion premium of 20%, according to a syndicate source.
The registered, off-the-shelf deal priced at the midpoint of talk, which was 3.25% to 3.75% for the coupon, and 17.5% to 22.5% for the initial conversion premium.
Concurrently, Wyndham priced $250 million of 9 7/8% five-year senior unsecured straight notes to yield 11%.
There was a $30 million greenshoe to cover over-allotments on the convertible notes offering.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities Inc., Merrill Lynch & Co. and Citi were joint bookrunners for the convertible notes offering.
The notes are non-callable with a standard change-of-control put.
Wyndham also entered into convertible note hedge and warrant transactions with affiliates of one or more of the underwriters.
Other than a portion of proceeds to cover the hedge transaction costs, Wyndham plans to use proceeds of the convertibles to pay down a revolving credit facility.
Wyndham is a Parsippany, N.J.-based hospitality company.
| Issuer: | Wyndham Worldwide Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $200 million
|
| Maturity: | May 1, 2012
|
| Coupon: | 3.5%
|
| Price: | Par
|
| Yield: | 3.5%
|
| Conversion premium: | 20%
|
| Conversion price: | $12.73
|
| Conversion ratio: | 78.5423
|
| Price talk: | 3.25%-3.75%, up 17.5%-22.5%
|
| Call: | Non callable for life
|
| Puts: | Change-of-control put
|
| Bookrunners: | Credit Suisse, JP Morgan, Merrill Lynch and Citi
|
| Pricing date: | May 13
|
| Settlement: | May 19
|
| Distribution: | Registered, off the shelf
|
| Stock symbol: | NYSE: WYN
|
| Market capitalization: | $1.89 billion
|
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