By Kenneth Lim
Boston, March 16 - France's Compagnie Generale des Etablissements Michelin priced 610 million of 10-year zero-coupon convertible senior unsecured bonds in the Oceane structure near the rich end of talk on Friday, to yield 3.07% with an initial conversion premium of 40%.
The Oceanes were talked at a yield of 10-year euro swaps minus 110 basis points to 10-year euro swaps minus 60 bps and an initial conversion premium of 35% to 40%. They were offered at par of 103.82.
There is an over-allotment option for a further 90 million.
BNP Paribas and Calyon were the bookrunners of the Regulation S offering.
The bonds are non-callable for the first four years, after which they may be called subject to an accreting trigger at 130% of the conversion price.
The bonds have dividend and takeover protection.
Michelin, a Clermont-Ferrand, France-based tire maker, said the proceeds of the deal will be used for general purposes.
| Issuer: | Compagnie Generale des Etablissements Michelin
|
| Issue: | Convertible senior unsecured Oceane bonds
|
| Bookrunners: | BNP Paribas and Calyon
|
| Amount: | 610 million
|
| Greenshoe: | 90 million
|
| Maturity: | Jan. 1, 2017
|
| Coupon: | 0%
|
| Price: | 103.82
|
| Redemption price: | 139.57
|
| Yield: | 3.07%
|
| Conversion premium: | 40%
|
| Conversion price: | 103.82
|
| Conversion ratio: | 1
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Jan. 1, 2011, thereafter callable subject to accreting hurdle at 130% of conversion price
|
| Price talk: | 10-year euro swaps minus 110 bps to 10-year euro swaps minus 60 bps, up 35% to 40%
|
| Pricing date: | March 16
|
| Distribution: | Regulation S
|
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