Stewart Information Services Prices Offering

HOUSTON (AP) ¿ Stewart Information Services Corp., a real estate information and title insurance provider, on Friday said it priced its private offering of $60 million of 6 percent convertible senior notes due 2014.

Stewart also granted the initial buyer of the notes a 30-day option to buy up to an additional $5 million of the notes.

The notes will pay interest semiannually at a rate of 6 percent beginning on April 15. The notes are convertible into shares of Stewart's common shares at a conversion rate of 77.6398 shares per $1,000 of notes, equal to a conversion price of $12.88 per share.

The conversion price represents a 25 percent premium above Stewart's Thursday closing price of $10.30.

Stewart expects the net proceeds from the offering to total $57.5 million, or about $62.3 million if the initial buyer's option is fully exercised. Stewart plans to use the proceeds and existing cash on hand to pay down $60.5 million of outstanding bank debt.

Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

More from Stocks

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says

Abiomed Stock Should Rise Some 12% From Here, Piper Jaffray Analyst Says

Abiomed Stock Should Rise Some 12% From Here, Piper Jaffray Analyst Says

Video: Here Is Why Carvana Isn't Worried About Amazon

Video: Here Is Why Carvana Isn't Worried About Amazon

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat