By Kenneth Lim
Boston, Dec. 12 - Beckman Coulter Inc. on Monday priced $525 million of 30-year convertible senior notes cheaper than talk, at a coupon of 2.5% and an initial conversion premium of 25% - and later in the day it announced the $75 million greenshoe had been exercised, raising the deal size to $600 million.
The convertibles were offered at par. Price talk was revised on Monday to a coupon between 2.5% and 2.625% with an initial conversion premium of 27.5%. Original price talk was for a coupon of 2.25% to 2.75% and an initial conversion premium of 27.5% to 32.5%.
There over-allotment option was for a further $75 million.
Morgan Stanley was the bookrunner of the Rule 144A offering.
The convertibles are non-callable for the first seven years, and may be put in years seven, 10, 15, 20 and 25.
There is a contingent conversion hurdle at 130% of the conversion price for the first seven years and contingent payment at 120% of the principal.
There is dividend and takeover protection.
The securities have a net-share settlement feature.
Beckman Coulter, a Fullerton, Calif.-based developer of biomedical test systems and supplies, said $100 million of the proceeds will be used to concurrently buy back common stock, while another $245 million will be used to tender for its outstanding 7.45% senior notes due 2008. A further $185 million will be used to repay a bridge facility it entered into to buy Lumigen Inc., with the remainder earmarked for paying off an outstanding revolving debt.
| Issuer: | Beckman Coulter Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Morgan Stanley
|
| Amount: | $525 million
|
| Greenshoe: | $75 million
|
| Maturity: | Dec. 15, 2036
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 25%
|
| Conversion price: | $74.21
|
| Conversion ratio: | 13.4748
|
| Contingent conversion: | 130%
|
| Contingent payment: | 120%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Dec. 20, 2013
|
| Puts: | Dec. 15, 2013; Dec. 15, 2016; Dec. 15, 2021; Dec. 15, 2026; Dec. 15, 2031
|
| Price talk: | 2.5%-2.625%, up 27.5%
|
| Pricing date: | Dec. 11 after the close
|
| Distribution: | Rule 144A
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
