Triumph prices $175 million convertibles to yield 2.625%, up 32%

New York, Sept. 12 - Triumph Group, Inc. priced $175 million of 20-year convertible senior subordinated notes to yield 2.625% with a 32% initial conversion premium.

The deal, which came after the close Tuesday, priced in the middle of talk which had put the coupon at 2.375% to 2.875% and the initial conversion premium at 30% to 35%.

The conversion price is $54.45 and the conversion ratio 18.3655.

Bank of America is the bookrunner for the Rule 144A offering.

There is a greenshoe option for a further $26.25 million.

The notes will be non-callable for the first five years, with puts in years five, 10 and 15.

There will be a contingent conversion hurdle at 130% of the conversion price and Triumph will pay contingent interest after Oct. 6, 2011 under certain conditions.

The convertibles will have dividend and takeover protection, and a net-share settlement feature.

Triumph, a Wayne, Pa.-based maker of aircraft components, will use the proceeds of the deal to prepay its existing class A and B senior notes due 2012 and to repay part of a revolving credit line. Triumph said part of the reason for paying down that debt was to remove covenants in the senior notes in order to give the company more flexibility in making acquisitions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.