By Ronda Fears
Nashville, July 27 - Barnes Group Inc. sold $85 million of 20-year convertible noted at par to yield 3.75% with a 23% initial conversion premium via sole bookrunner Banc of America Securities LLC.
The issue priced at the cheap end of yield talk for a 3.25% to 3.75% coupon and at the cheaper end of premium guidance of 20% to 25%.
Proceeds are earmarked to repay a bank revolver, the company said, and any remaining proceeds will be used for further debt reduction, capital expenditures, working capital and possible acquisitions.
Barnes Group, based in Bristol, Conn., makes precision metal components and assemblies for a variety of industries, including aerospace, utilities and telecommunications.
| Issuer: | Barnes Group Inc.
|
| Issue: | Convertible senior subordinated notes
|
| Bookrunner: | Banc of America Securities LLC
|
| Amount: | $85 million
|
| Greenshoe: | $15 million
|
| Maturity: | Aug. 1, 2025
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Conversion premium: | 23%
|
| Conversion price: | $42.19
|
| Conversion ratio: | 23.7009
|
| Contingent conversion: | No
|
| Contingent payment: | 120%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call: | Non-callable for 5.5 years
|
| Put: | In years 5.5, 10.5 and 15.5
|
| Price talk: | 3.25%-3.75%, up 20%-25%
|
| Pricing date: | July 26, after the close
|
| Settlement date: | Aug. 1
|
| Distribution: | Rule 144A
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