SCI Systems sells $500 mln conv subord notes
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NEW YORK, March 10 (Reuters) - SCI Systems Inc. (NYSE:SCI), a Huntsville, Ala.-based diversified electronics maker, late on Thursday sold $500 million of seven-year convertible
subordinated notes, International Insider, a pricing information service, said on Friday.
The notes, which mature March 13, 2007, carry a 3 percent coupon and are convertible into SCI's common stock at $56.23, a 26 percent premium over the stock's 44-5/8 Thursday closing price on the New York Stock Exchange.
Salomon Smith Barney led the sale, International Insider said. The sale was increased in size from an original $400 million.
SCI said in a March 3 press release it expected to grant the underwriters a $60 million overallotment option, and said it would sell the notes under a shelf filing with the U.S. Securities and Exchange Commission that was declared effective Feb. 8.
SCI said it intends to use proceeds to repay amounts due under its revolving line of credit and commercial paper facility.
Moody's Investors Service rates the notes Ba1, its highest junk grade. Standard & Poor's rates them BBB-minus, its lowest investment grade. |
