Wilson Greatbatch $125 million convertible talked at 2.0-2.5% yield,, up 27.5-32.5%

By Ronda Fears

Nashville, May 20 - Wilson Greatbatch Technologies Inc. launched $125 million of 10-year convertible subordinated debentures talked to yield 2.0% to 2.5% with a 27.5% to 32.5% initial conversion premium via lead manager Morgan Stanley.

The Rule 144A issue is scheduled to price before the market open Thursday.

The notes will be non-callable for seven years, with a put in year 7 as well.

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

At the middle of guidance, Deutsche Bank Securities analysts put the deal between 3.2% rich and 1.8% cheap, using a credit spread of 475 basis points over Libor and a 30% stock volatility.

There is a $25 million greenshoe available.

The company, which manufactures medical devices, said proceeds would be used to permanently repay outstanding debt on its senior credit facility and for general corporate purposes.

Wilson Greatbatch shares closed Tuesday up 15c, or 0.44%, to $33.91.

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