By Rebecca Melvin
New York, March 2 - Altra Holdings Inc. priced $75 million of 20-year convertibles after the market close Tuesday at par to yield 2.75% with an initial conversion premium of 35%, according to a news release.
The Rule 144A deal priced at the rich end of talk, which was for a 2.75% to 3.25% yield and a 30% to 35% initial conversion premium.
J.P. Morgan Securities LLC and Jefferies & Co. were the joint bookrunners.
There is a $10 million over-allotment option.
The bonds are non-callable until March 1, 2015 and then are provisionally callable for three years for cash plus a "make-whole premium," if shares exceed 130% of the conversion price. There are puts in years seven, 10 and 15.
There is takeover and dividend protection.
Proceeds will be used for the acquisition of Danfoss Bauer GmbH if and when the acquisition closes and for general corporate purposes.
Altra is an automotive parts supplier based in Quincy, Mass.
| Issuer: | Altra Holdings Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Jefferies & Co.
|
| Amount: | $75 million
|
| Greenshoe: | $10 million
|
| Maturity: | March 2031
|
| Coupon: | 2.75%
|
| Price: | Par
|
| Yield: | 2.75%
|
| Conversion premium: | 35%
|
| Conversion price: | $27.70
|
| Conversion ratio: | 36.0985 shares per $1,000 bond
|
| Calls: | Non-callable until March 1, 2015, then provisionally callable until March 1, 2018 if shares are 130% of conversion
|
| Puts: | On March 1 of 2018, 2021 and 2026
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Price talk: | 2.75%-3.25%, up 30%-35%
|
| Pricing date: | March 1
|
| Settlement date: | March 7
|
| Distribution: | Rule 144A
|
| Stock reference price: | $20.52
|
| Stock symbol: | Nasdaq: AIMC
|
| Market capitalization: | $549.6 million
|
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