By Rebecca Melvin
New York, Sept. 10 - Coinstar Inc. priced $175 million of five-year convertible senior notes after the market close Thursday at par to yield 4% with an initial conversion premium of 32.5%, according to a market source.
The registered, off-the-shelf deal priced at the tight end of revised talk. Talk was revised down to 4% to 4.25% for the coupon and 32.5% for the premium, from 4.25% to 4.75%, with an initial conversion premium of 27.5% to 32.5%.
There is an over-allotment option for an additional $25 million of notes.
Joint bookrunners were Morgan Stanley & Co. Inc., Bank of America Merrill Lynch, Jefferies & Co. and RBC Capital Markets Corp.
Co-managers were J.P. Morgan Securities Inc., Wells Fargo, KeyBanc Capital Markets Inc. and Merriman Curhan Ford & Co.
The bonds are non-callable for life with no puts. The bonds also have contingent conversion at a price hurdle of 130%, as well as net share settlement, dividend protection and change-of-control protection.
Proceeds will be used to repay amounts outstanding under Coinstar's term loan under its senior secured credit facility and to pay down a portion of the outstanding amounts under Coinstar's $400 million revolving line of credit.
Bellevue, Wash.-based Coinstar owns and operates self-service coin-counting machines.
| Issuer: | Coinstar Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Morgan Stanley & Co. Inc., Bank of America Merrill Lynch, Jefferies & Co., RBC Capital Markets Corp.
|
| Co-managers: | J.P. Morgan Securities Inc., Wells Fargo, KeyBanc Capital Markets Inc., Merriman Curhan Ford & Co.
|
| Amount: | $175 million
|
| Greenshoe: | $25 million
|
| Maturity: | Sept. 1, 2014
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $40.29
|
| Conversion ratio: | 24.8181
|
| Contingent conversion: | 130%
|
| Net-share settlement: | Cash, stock or a combination at issuer's option
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable for life
|
| Puts: | None
|
| Price talk: | revised to 4%-4.25%, up 32.5%, from 4.25%-4.75%, up 27.5%-32.5%
|
| Pricing date: | Sept. 10
|
| Settlement date: | Sept. 16
|
| Distribution: | Registered, off shelf
|
| Stock symbol: | CSTR
|
| Stock reference price: | $30.41
|
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