Calgon prices $65 million 30-year convertibles to yield 5%, up 20%

Boston, Aug. 14 - Calgon Carbon Corp. priced $65 million of 30-year convertible senior unsecured notes to yield 5% with an initial conversion premium of 20%.

The deal came at the cheap end of talk, which was for a coupon of 4.5% to 5% and an initial conversion premium of 20% to 25%. Terms were set after the close Monday.

The conversion price is $5.10 and the ratio 196.0784.

The notes were offered at par.

There is an over-allotment option for a further $10 million.

JP Morgan was the bookrunner of the Rule 144A offering.

The notes will be non-callable for the first five years, with puts in years five, 10 and 20.

The convertibles will have dividend and takeover protection.

There is a net-share settlement feature.

Calgon is a Pittsburgh-based supplier of products and solutions for water and air purification. It plans to use the proceeds of the deal to repay its outstanding debt under an existing revolving loan.

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