By Rebecca Melvin
New York, Oct. 4 - Club Mediterranee SA priced €80 million of five-year convertible bonds in the Oceane structure to yield 6.11% with an initial conversion premium of 27.5%, according to a news release.
Demand for the Regulation S offering was high, so the deal came at the middle of the initial range of coupon and premium, the release said.
The initial conversion price has been set at €16.365 per bond.
Proceeds are aimed at diversifying the company's financing sources and extending debt, namely refinancing some of the company's Oceane 2010 convertibles before their Nov. 1 maturity date.
Concurrently with the bond offering, Club Mediterranee purchased through off-market transactions about €12 million of the 2010 Oceanes, or 8% of the outstanding issuance, at €50.50 per bond.
Because the amount of 2010 bonds repurchased is less than 20% of the number of bonds initially issued, the company will not place a standing repurchase order for the remaining outstanding Oceanes. If the level of repurchased paper does go over 20%, then the company will implement a standing repurchase order.
Societe Generale Corporate & Investment Banking was lead manager and bookrunner of the transactions. Credit Agricole Corporate and Investment Bank and Natixis were the co-lead managers.
The new bonds will be non-callable until Nov. 15, 2013 and then provisionally callable at a 130% price hurdle.
Early redemption of the new bonds is also possible at the bondholders' option in the event of a change of control.
The bonds may be converted at any time from Oct. 7 at the rate of one share for one bond.
Settlement is expected Oct. 7.
Club Mediterranee is a Paris-based vacation resort operator.
| Issuer: | Club Mediterranee SA
|
| Issue: | Oceane convertibles
|
| Amount: | €80 million
|
| Maturity: | Nov. 15, 2015
|
| Bookrunners: | Societe Generale Corporate & Investment Banking
|
| Co-managers: | Credit Agricole Corporate and Investment Bank and Natixi
|
| Coupon: | 6.11%
|
| Price: | Par of €16.365
|
| Yield: | 6.11%
|
| Conversion premium: | 27.5%
|
| Conversion price: | €16.365
|
| Conversion ratio: | 1
|
| Call: | Nov. 15, 2013 onwards at par, subject to 130% hurdle
|
| Change-of-control put: | Yes
|
| Pricing date: | Oct. 4
|
| Settlement date: | Oct. 7
|
| Distribution: | Regulation S
|
| Stock reference price: | €12.835
|
| Stock ticker: | NYSE Euronext Paris: CU
|
| Market capitalization: | €386.7 million
|
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