BankUnited $100 million overnight convertible talked to yield 2.625-3.125%, 42-48% premium

By Ronda Fears

Nashville, Feb. 23 - BankUnited Financial Corp. launched $100 million of 30-year convertible notes in the overnight market talked to yield 2.625% to 3.125% with a 42% to 48% initial conversion premium.

Bear Stearns & Co. Inc. is sole bookrunner of the Rule 144A deal, which is set to price before Tuesday's open. UBS Investment Bank is co-manager.

The senior notes will be non-callable for seven years with puts in years seven, 10, 15, 20 and 25 at par.

There is a 125% contingent conversion trigger and a 120% contingent payment trigger.

Holders will have full dividend protection by way of a conversion ratio adjustment.

There will be a 90-day lockup barring company officers and directors from stock transactions.

There is a $15 million greenshoe available.

The Florida-based consumer bank, with $7.2 billion in assets at Dec. 31, said proceeds would be used for general corporate purposes, including expanding operations through new branches and operations centers, acquiring debt and equity securities, redeeming outstanding debt, investing in loans and mortgage-backed or other securities, possible acquisitions and funding working capital needs.

BankUnited shares closed Monday down 63 cents, or 2.3%, to $26.80.

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