Convertibles Calendar

Week of Oct. 31

IPC HOLDINGS, LTD. (Symbol: IPCR): 11 million series A mandatory convertible preferred shares; to price Nov. 1 after the close; public offering; alongside sale of 12 million common shares with 1.2 million share greenshoe; Citigroup Corporate and Investment Banking, Morgan Stanley & Co. joint bookrunners; talked to yield 7% to 7.5%, with an initial conversion premium of 18% to 22%; three year maturity; Pembroke, Bermuda, property catastrophe reinsurer will use proceeds to provide additional capital to its wholly owned subsidiary, IPCRe Ltd., and for other general corporate purposes.

ON THE HORIZON

NRG ENERGY INC. (Symbol: NRG) an issue of mandatory convertible preferreds expected to total $500 million, with concurrent offerings of $1 billion equity and $2.5 billion debt, to finance roughly $4 billion of its $5.8 billion acquisition of Texas Genco LLC; Texas Genco owners may also receive as much as $400 million preferred stock; Princeton, N.J.-based NRG has operations in the southeastern, western and northeastern states, while Texas Genco has operations in eastern Texas; the transaction is expected to close first quarter 2006.

CHESAPEAKE ENERGY CORP. (Symbol: CHK) an issue of convertible preferreds as part of a $1 billion package of preferred and common stock, to finance its acquisition of Columbia Energy Natural Resources LLC from Triana Energy Holdings LLC for $2.2 billion; Chesapeake gains an additional 4.1 million net acres and will begin exploration in the Appalachian Basin; Oklahoma City-based Chesapeake expects to close the deal no later than Dec. 15.

E*TRADE FINANCIAL CORP. (Symbol: ET) an issue of mandatory convertibles, expected to total roughly $450 million, with concurrent offerings of equity and senior notes, to finance its acquisition of BrownCo., the online brokerage service of JP Morgan Chase, for $1.6 billion cash; other financings include $150 million from its existing bank revolver; E*Trade is a New York-based online trading company that aims, with this and its pending acquisition of Harris Direct, to remain competitive with TD Ameritrade and Charles Schwab, though it ranks third both in terms of daily average revenue trades and client assets.

DRS TECHNOLOGIES INC. (Symbol: DRS) $250 million of senior subordinated convertible notes; as part of a mix of borrowings to help fund its acquisition of Engineered Support Systems Inc. (ESSI); the other financings include $124.7 million under a new revolving credit facility, $200 million from an expanded existing term loan and $700 million of new high-yield debt; DRS is a Parsippany, N.J.-based provider of technology products and services to defense, government intelligence and commercial customers. ESSI is a St. Louis-based diversified supplier of integrated military electronics, support equipment and technical services.

© 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.