IT provider Telvent closes private sale of $200 million in notes; proceeds to pay unit’s loan

Telvent closes private placement of $200M in notes

ROCKVILLE, Md. — Information technology provider Telvent said its private placement of $200 million in debt closed Monday.

The company sold $200 million of 5.5 percent senior subordinated convertible notes due 2015 to institutional buyers. The offering included $25 million of notes issued pursuant to the exercise of the initial purchasers’ option in full.

After deducting discounts, commissions and expenses, Telvent expects to contribute most of the net proceeds from the offering to its subsidiary Telvent DTN Inc. The unit will use the funds to repay all of its outstanding debt under its credit agreement in full.

The remainder of the net proceeds will be used by Telvent for general corporate purposes.

Under certain circumstances, the notes will be convertible into cash, Telvent’s ordinary shares or a combination of the two, to be decided by the company.

The initial conversion rate is equivalent to about $34.18 per share and represents a 22.5 percent conversion premium over the closing price of Telvent’s ordinary shares of $27.90 per share on April 6.

Telvent shares closed Monday’s session down 81 cents, or 2.6 percent, at $30.88. The stock has changed hands between $14.12 and $41.65 in the past 52 weeks.