By Ronda Fears
Memphis, Feb. 2 - Newport Corp. priced $150 million of five-year convertible subordinated notes ahead of schedule on Thursday after the market closed at par with a coupon of 2.5% and an initial conversion premium of 27.5%. The issue was moved up from original plans to price on Monday after the market closed.
The deal came at the tight end of talk, which had put the coupon between 2.5% and 3.0% and the premium between 22.5% and 27.5%.
Merrill Lynch is bookrunner of the Rule 144A offering.
The issue is non-callable. There are no puts.
There is a contingent conversion threshold of 120%.
Irvine, Calif.-based Newport, which makes lasers, photonics and precision products, plans to use $48.2 million of proceeds to pay off debts owed to Thermo Electron Corp. and $40 million to buy back common stock. Remaining proceeds will be used for working capital and general purposes.
| Issuer: | Newport Corp.
|
| Issue: | Subordinated notes
|
| Bookrunner: | Merrill Lynch
|
| Amount: | $150 million
|
| Greenshoe: | $25 million
|
| Maturity: | Feb. 15, 2012
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $24.05
|
| Conversion ratio: | 41.5861
|
| Contingent conversion: | 120%
|
| Call protection: | Non-callable
|
| Puts: | No
|
| Price talk: | 2.5%-3.0%, up 22.5%-27.5%
|
| Pricing date: | Feb. 1, after the close
|
| Settlement date: | Feb. 7
|
| Distribution: | Rule 144A
|
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