CSG Systems $200 million convertible talked at 2.25%-2.75%, up 43%-47%

By Ronda Fears

Nashville, May 25 - CSG Systems International Inc. after the close Tuesday launched $200 million of 20-year convertible notes talked to yield 2.25% to 2.75% with a 43% to 47% initial conversion premium.

Lehman Brothers is sole bookrunner of the Rule 144A deal, which was set to price after the close Wednesday.

The senior subordinated notes will be non-callable for seven years with a put in year seven.

There also is a 130% contingent conversion trigger and 120% contingent payment trigger.

A $30 million greenshoe is available.

Englewood, Colo.-based CSG Systems, which provides next-generation billing and customer services for the cable television, satellite, advanced internet protocol services, next-generation mobile and fixed wireline markets, plans to use up to $40 million of proceeds to buy back stock and the remainder plus some cash on hand to repay debt.

CSG System shares closed Tuesday off 6 cents, or 0.32%, to $18.84. In after-hours trading, the stock was down another 59 cents, or 3.13%.

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