By Rebecca Melvin
New York, April 23 - Old Republic International Corp. priced an upsized $275 million of three-year convertible senior notes after the close Thursday to yield 8%, according to a syndicate source.
The deal was initially expected to be $250 million in size.
The registered offering priced at the midpoint of talk for the coupon which was 7.75% to 8.25%.
Further details of the final terms, including the initial conversion premium and conversion price, were not available at press time. A syndicate source said some document discrepancies would delay the availability of that information.
The initial conversion premium was talked at 17.5% to 22.5%.
Merrill Lynch & Co. and J.P. Morgan Securities Inc. were joint bookrunning managers of the deal.
The bonds' greenshoe was increased to $41.25 million from $37.5 million.
The bonds are non-callable for life with no puts, and they will be stock settled.
Old Republic is a Chicago-based insurance holding company. It expects to use proceeds of the offering to increase the capital of its general and title insurance business segments, to repay a portion of short term indebtedness, and for general corporate purposes.
| Issuer: | Old Republic International Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $275 million, upsized from $250 million
|
| Greenshoe: | $41.25 million, upsized from $35 million
|
| Maturity: | 2012
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Price talk: | 7.75%-8.25%, up 17.5%-22.5%
|
| Call: | Non callable for life
|
| Puts: | No puts
|
| Bookrunners: | Merrill Lynch and JP Morgan
|
| Pricing date: | April 23
|
| Distribution: | Registered
|
| Stock symbol: | NYSE: ORI
|
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