A $126 million convertible for the IPP independent power producer was priced yesterday at the outer end of terms by joint leads Credit Suisse First Boston and Deutsche Bank.
The five-year premium redemption deal came on a coupon of 2.5%, a conversion premium of 16% and a yield-to-maturity of 6.73% equating to 200bp over Treasuries. This compared to an indicative range of a 2% to 2.5% coupon, 16% to 22% conversion premium and yield-to-maturity of 6.10% to 6.60%.
With a $25 million greenshoe, the deal is also callable after year two, subject to a 120% trigger and has premium redemption in year five at 124.86% against an indicative 120% to 127.06%. There is no...
