By Toni Weeks
San Luis Obispo, Calif., March 18 - Navistar International Corp. priced $370 million of five-year 4.75% convertible senior notes after the market close Tuesday at par to yield 4.75% with an initial conversion premium of 57.5%, according to a press release.
The Rule 144A offering was initially talked at $350 million in size. The greenshoe was upsized to $55.5 million from $52.5 million.
The notes were talked to yield 4.25% to 4.75% with an initial conversion premium of 57.5% to 62.5%, according to a syndicate source.
The offering is being sold via J.P. Morgan Securities LLC (active), Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, and BofA Merrill Lynch as joint bookrunners.
The bonds are non-callable for three years and then provisionally callable if shares exceed 130% of the conversion price.
Settlement is expected March 24.
Proceeds will be used to retire a portion of the company's outstanding 3% convertible senior notes due October 2014.
The Lisle, Ill.-based Navistar is a truck, bus, military vehicle and diesel engine maker.
| Issuer: | Navistar International Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $370 million, upsized from $350 million
|
| Greenshoe: | $55.5 million, upsized from $52.5 million
|
| Maturity: | Five years
|
| Bookrunners: | J.P. Morgan Securities LLC (active), Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, and BofA Merrill Lynch
|
| Coupon: | 4.75%
|
| Price: | Par
|
| Yield: | 4.75%
|
| Conversion premium: | 57.5%
|
| Conversion price: | $54.07
|
| Conversion ratio: | 18.4946
|
| Calls: | Non-callable for three years, then provisionally callable for two years if shares exceed 130% of conversion price
|
| Price talk: | 4.25%-4.75%, up 57.5%-62.5%
|
| Pricing date: | March 18
|
| Settlement date: | March 24
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: NAV
|
| Stock price: | $34.33 at close March 18
|
| Market capitalization: | $2.79 billion
|
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