Published on 3/3/2004 in the Prospect News Convertibles Daily.
New Issue: PSS World Medical $125 million convertible yields 2.25%, up 45%
Nashville, March 3 - PSS World Medical Inc. sold $125 million of 20-year convertible notes at par to yield 2.25% with a 45% initial conversion premium via sole bookrunner Goldman Sachs & Co.
The Rule 144A deal priced at the aggressive end of guidance for a 2.25% to 2.75% coupon and 40% to 45% initial conversion premium.
The issue was sold on swap, with $35 million of proceeds earmarked to buy back stock. The Jacksonville, Fla.-based specialty marketer and distributor of medical products said $60 million of proceeds would be used to reduce its revolving credit facility and any remaining proceeds for general corporate purposes.
Terms of the deal are:
Issuer: | PSS World Medical Inc.
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Issue: | Convertible senior notes
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Bookrunners: | Goldman Sachs & Co.
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Amount: | $125 million
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Greenshoe: | $25 million
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Maturity: | March 2024
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Coupon: | 2.25%
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Price: | Par
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Yield: | 2.25%
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Conversion premium: | 45%
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Conversion price: | $17.10
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Conversion ratio: | 58.4795
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Contingent conversion: | 120%
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Contingent payment: | 120%
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Call: | Non-callable for 5 years
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Put: | In years 5, 10 and 15
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Price talk: | 2.25-2.75%, up 40-45%
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Pricing date: | March 2, after the close
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Settlement date: | March 8
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Distribution: | Rule 144A
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