By Ronda Fears
Nashville, Tenn., April 26 - Temple-Inland Inc. sold $300 million of three-year mandatory convertibles in the upper DECS structure at par of 50 to yield 7.5% with a 22% initial conversion premium via joint lead managers Salomon Smith Barney, book-runner, and UBS Warburg. The deal sold at the aggressive end of pricing guidance.
Temple-Inland also sold 3.6 million common shares at $52 each, fetching another $187.2 million.
Also, Temple-Inland filed to sell $500 million of senior notes on Friday with the SEC.
Terms of the new deal are:
Issuer: Temple-Inland Inc.
Amount: $300 million
Greenshoe: $45 million
Lead Managers: Salomon Smith Barney (book-runner) and UBS Warburg
Maturity Date: May 17, 2005
Dividend: 7.5%
Issue Price: par, $50
Yield: 7.5%
Conversion Premium: 22%
Conversion Price: $52.00/$63.44
Conversion Ratio: 0.7881/0.9615
Call: non-callable
Ratings: Moody's: Baa3
| S&P: BBB
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| Settlement Date: | May 1
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