By Ronda Fears
Nashville, June 10 - FEI Co. sold $150 million of 20-year convertible notes, on a call spread, at par to yield 0% with a 33% initial conversion premium.
Credit Suisse First Boston was sole lead manager of the Rule 144A deal, which sold at the cheap end of guidance for a 33% to 37% premium.
The company said it would use a portion of proceeds to hedge the dilution of its stock from the convertible offering, up to an effective conversion price of $40.80.
Remaining proceeds of about $122 million will be used for working capital and general corporate purposes, including acquisitions and the repurchase, redemption or repayment of other debt.
Terms of the deal are:
Issuer: FEI Co.
| Issue: | Convertible senior debentures
|
| Lead manager: | Credit Suisse First Boston
|
| Amount | $150 million
|
| Greenshoe: | $50 million
|
| Maturity: | June 15, 2023
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: | 33%
|
| Conversion price: | $27.132
|
| Conversion ratio: | 36.86
|
| Call: | Non-callable for 5 years, then at par
|
| Put: | In years 5, 10 and 15 at 100.25
|
| Contingent conversion: | 120%
|
| Distribution: | Rule 144A
|
| Pricing date: | June 10 before open
|
| Settlement: | June 13
|
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