New Issue: Maverick Tube $100 million convertibles yield 4.0%, up 50%

By Ronda Fears

Nashville, June 3 - Maverick Tube Corp. sold $100 million of 30-year convertible senior subordinated notes at par to yield 4.0% with a 50% initial conversion premium in the Rule 144A market via lead manager JPMorgan.

Terms were tightened Tuesday to put the yield at 4.0% with a 46% to 50% initial conversion premium, compared with original guidance for a yield of 3.875% to 4.375% with a 40% to 45% initial conversion premium.

St. Louis-based Maverick, which produces welded tubular steel products used in energy and industrial applications, said proceeds would be used to reduce amounts outstanding on its existing senior credit facility.

Terms of the deal are:

Issuer: Maverick Tube Corp.

Issue:	Convertible senior subordinated notes
Lead manager:	JPMorgan
Amount	$100 million
Greenshoe:	$20 million
Maturity:	June 15, 2033
Coupon:	4.0%
Price:	Par
Yield:	4.0%
Conversion premium:	50%
Conversion price:	$29.19
Conversion ratio:	34.2583
Call:	Non-callable for 5 years, then with a 130% hurdle
Put:	in years 8, 10, 15, 20 and 25
Contingent conversion:	120%
Contingent payment:	130%
Pricing date:	June 3
Settlement:	June 9

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