By Rebecca Melvin
New York, July 16 – Aveng Ltd., a South African construction company, priced ZAR 2 billion of five-year senior unsecured convertible bonds at par to yield 7.25% with an initial conversion premium of 30% over the share reference price, according to a news release.
The Regulation S deal was launched as a ZAR 1.5 billion base deal with a ZAR 500 million upsizing option.
Pricing came toward the cheap end of 6.75% to 7.5% coupon talk and at the cheap end of 30% to 35% premium talk.
The bonds are non-callable until Aug. 7, 2017 and then are provisionally callable if shares exceed 130% of the conversion price. They also have takeover protection.
Proceeds will be used to repay existing debt and for general corporate purposes.
Barclays Bank plc and J.P. Morgan Securities plc were the joint bookrunners.
Aveng plans to apply to list the bonds for trading on the JSE Ltd.
Johannesburg-based Aveng is a construction and engineering services company.
| Issuer: | Aveng Ltd.
|
| Issue: | Convertible senior unsecured notes
|
| Amount: | ZAR 2 billion
|
| Maturity: | July 24, 2019
|
| Bookrunners: | Barclays Bank plc, J.P. Morgan Securities plc
|
| Co-manager: | Nedbank Ltd.
|
| Coupon: | 7.25%
|
| Price: | Par
|
| Yield: | 7.25%
|
| Conversion premium: | 30%
|
| Conversion price: | ZAR 28.76
|
| Calls: | Non-callable until Aug. 7, 2017, then provisionally callable at a 130% price hurdle
|
| Takeover protection: | Yes
|
| Price talk: | 6.75%-7.5%, up 30%-35%
|
| Pricing date: | July 16
|
| Settlement date: | July 23
|
| Stock symbol: | Johannesburg: AEG
|
| Stock reference price: | ZAR 22.12
|
| Distribution: | Regulation S
|
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