By Ronda Fears
Nashville, Tenn., April 19 - BJ Services Co. sold $355 million in proceeds of 20-year discount 0.5% convertible senior unsecured notes at 79.076 for a 1.625% yield-to-maturity and a 45% initial conversion premium, via joint lead managers Banc of America Securities and Merrill Lynch.
The issue pays a 0.5% cash coupon on the issue price. The conversion ratio is fixed so the conversion price will increase to $54.67 at year three, or a premium of 50%.
The Rule 144A deal sold at the midpoint of price talk.
Houston-based BJ Services said it would use proceeds to fund its proposed $420 million acquisition of OSCA Inc., another oilfield services company, and for general corporate purposes.
Terms of the new deal are:
Issuer: BJ Services Co.
Amount: $355 million (proceeds)
Greenshoe: $53.25 million (proceeds)
Lead Manager: Banc of America Securities and Merrill Lynch
Maturity Date: April 18, 2022
Coupon: 0.5%
Issue Price: 79.076
Yield: 1.625%
Conversion Premium: 45%, rising to 50% at year three
Conversion Price: $52.85, rising to $54.67 at year three
Conversion Ratio: 14.9616
Call: non-callable for three years
Put: in years three, five, 10 and 15 in cash or stock
Contingent Conversion: 120% trigger, declining to 110% at maturity
Expected Rating(s): Moody's: Baa2
| S&P: BBB+
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| Settlement Date: | April 24
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