Champion launches $130 million convertible senior notes due 2037, 3%-3.5% coupon, up 73%-77%

By Evan Weinberger

New York, Oct. 29 - Champion Enterprises, Inc. launched $130 million in convertible senior notes due Nov. 1, 2037 Monday before the market open. The convertibles are talked at a 3% to 3.5% coupon and an initial conversion premium of 73% to 77%.

Credit Suisse Securities is the bookrunner for the registered transaction. There is a $19.5 million over-allotment option. The convertibles are scheduled to price Monday after the close.

The convertibles carry hard call protection until Nov. 1, 2012. There are investor puts on Nov. 1 in each of 2012, 2017, 2022, 2027 and 2032. The convertibles have dividend protection, a change of control put and a contingent debt agreement.

Champion is an Auburn Hills, Mich.-based produces manufactured homes and commercial buildings.

Champion plans to use the proceeds to repurchase notes due 2009, to pay off debt incurred under a term loan due 2012 and for general corporate purposes.

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