Convertibles Calendar

JULY 9 WEEK

KENDLE INTERNATIONAL INC. (Nasdaq: KNDL): $150 million convertible senior notes due July 15, 2012; UBS Investment Bank; off shelf; $22.5 million greenshoe; contingent conversion at 130%; no calls, no puts; Cincinnati-based clinical research organization will use at least 75% of proceeds to pay down a term loan; remainder for convertible note hedge transactions and for general corporate purposes; pricing Tuesday after the close; talked at a coupon of 3.125% to 3.625% with an initial conversion premium of 30% to 35%.

SONOSITE, INC. (Nasdaq: SONO): $150 million convertible senior notes due 2014; JPMorgan (books), Piper Jaffray, Savvian (co's); registered; $22.5 million greenshoe; no calls or puts; Bothell, Wash.-based maker of ultrasound systems will use proceeds for acquisitions of complementary businesses or product lines, for general corporate purposes and for convertible note hedge transactions; pricing Tuesday after the close; talked at a coupon of 3.625% to 4.125% with an initial conversion premium of 19% to 24%.

ON THE HORIZON

AMERICAN MORTGAGE ACCEPTANCE CO. (Amex: AMC): $42 million shares series A cumulative convertible preferred shares; Sterne, Agee & Leach, Inc. (books), Boenning & Scattergood, Inc. (joint lead); off shelf; $5.25 million greenshoe; forced conversion option beginning July 2012 subject to a 125% hurdle; no puts or calls; New York-based real estate investment trust will use proceeds to acquire additional mortgage-related assets; initial conversion premium set at 25% but no yield talk.

BLACK HILLS CORP. (NYSE: BKH): Mandatory convertible securities; proceeds, along with new equity and unsecured debt, to replace bridge facility; bridge facility will be used to fund the Rapid City, S.D.-based diversified energy company's acquisition of Aquila, Inc.'s electric utility in Colorado and gas utilities in Colorado, Kansas, Nebraska and Iowa, along with the associated liabilities, for $940 million.

MCMORAN EXPLORATION CO. (NYSE: MMR): Equity-linked securities to help fund acquisition of the Gulf of Mexico shelf oil and gas properties of Newfield Exploration Co.; initial financing is $800 million revolver and $800 million bridge loan; McMoRan plans to repay the bridge loan with bonds, equity and equity-linked securities; JPMorgan, Merrill Lynch are lead on revolver and bridge loan; New Orleans-based explorer, developer and producer of oil and natural gas.

MYLAN LABORATORIES INC. (NYSE: MYL): $1.5 billion to $2 billion of common stock and mandatory convertible securities; to refinance debt to fund acquisition of Merck KGaA's generics business; Canonsburg, Pa., pharmaceutical company.

PANDA ETHANOL INC. (OTCBB: PDAE): $140 million seven-year convertible senior notes; Morgan Stanley; Rule 144A; coupon may be increased if operational milestones are not met; company may choose to pay the coupon in kind, in which case the principal will accrete at a 7% rate; company may call 25% of the convertibles at any time at a redemption price that varies depending on when the call is made, and the exercising of this option will prevent holders from converting the notes; callable after the third year at a price that will let holders realize a 15% rate of return; all the convertibles are also callable if either six months have lapsed since a qualified public offering or if the common stock is trading at double the conversion price and meets a liquidity threshold. If the notes are called under such circumstances within the first three years, the redemption price will let holders realize a 15% rate of return. After the first three years, a call under such circumstances will pay the principal; Dallas-based ethanol refining company that specializes in using cattle manure as a thermal energy source, said the proceeds of the deal will be used to fund its Yuma ethanol facility and general purposes; talked at a coupon of 6% with an initial conversion price of about $5 per share; will be offered at par, but the company will pay $1,500 per note at maturity; originally scheduled to price June 19; now no schedule.

© 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.