Deal conducted alongside $350 million public sale of 4.5% convertibles
By Devika Patel
Knoxville, Tenn., Feb. 28 - UTi Worldwide Inc. said it arranged a private placement of 175,000 convertible preference shares on Wednesday. The deal priced alongside a $350 million public sale of 4.5% convertible senior notes, which will settle concurrently with the placement.
UTi expects to pay dividends in kind on the convertible preference shares. Based on the initial conversion price for the preference shares of $13.8671 per ordinary share, and assuming all dividends are paid in kind, UTi expects to issue 15,534,575 ordinary shares if the preference shares remain outstanding through March 1, 2017 and are converted in full.
Until March 1, 2017, holders of the convertible preference shares will have pre-emptive rights with respect to the issuer's equity securities for so long as they own a number of convertible preference shares convertible into at least 6,309,896 ordinary shares.
The conversion price reflects a 9.13% discount to the Feb. 25 closing share price of $15.26.
Closing of the notes and preference shares are conditional upon each other.
Settlement is expected on March 4.
Proceeds will be used for general corporate purposes, including repayment of debt.
UTi Worldwide is an ocean freight and logistics company based in Road Town, the British Virgin Islands.
| Issuer: | UTi Worldwide Inc.
|
| Issue: | Convertible preference shares
|
| Preferreds: | 175,000
|
| Conversion price: | $13.8671
|
| Warrants: | No
|
| Pricing date: | Feb. 26
|
| Settlement date: | March 4
|
| Stock symbol: | Nasdaq: UTIW
|
| Stock price: | $15.26 at close Feb. 25
|
| Market capitalization: | $1.05 billion
|
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