Nashville, Feb. 24 - BankUnited Financial Corp. sold $100 million of 30-year convertible notes at par to yield 3.125% with a 42% initial conversion premium via sole bookrunner Bear Stearns & Co. Inc.
The Rule 144A deal priced at the cheap end of price talk of 2.625% to 3.125%, up 42% to 48%.
Holders will have full dividend protection by way of a conversion ratio adjustment.
There will be a 90-day lockup barring company officers and directors from stock transactions.
The Florida-based consumer bank, with $7.2 billion in assets at Dec. 31, said proceeds would be used for general corporate purposes, including expanding operations through new branches and operations centers, acquiring debt and equity securities, redeeming outstanding debt, investing in loans and mortgage-backed or other securities, possible acquisitions and funding working capital needs.
Terms of the deal are:
| Issuer: | BankUnited Financial Corp.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Bear Stearns & Co. Inc.
|
| Co-manager: | UBS Investment Bank
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| Amount: | $100 million
|
| Greenshoe: | $20 million, upped from $15 million
|
| Maturity: | February 2034
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| Coupon: | 3.125%
|
| Price: | Par
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| Yield: | 3.125%
|
| Conversion premium: | 42%
|
| Conversion price: | $38.06
|
| Conversion ratio: | 26.2771
|
| Contingent conversion: | 125%
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| Contingent payment: | 120%
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| Call: | Non-callable for 7 years
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| Put: | In years 7, 10, 15, 20 and 25, at par
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| Price talk: | 2.625-3.125%, up 42-48%
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| Pricing date: | Feb. 23, after the close
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| Settlement date: | Feb. 27
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| Distribution: | Rule 144A
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