By Abigail W. Adams
Portland, Me., Nov. 22 – Corestate Capital Holding SA priced €200 million in five-year convertible notes to yield 1.375%, up 27.5%, at the mid-point of talk after market close Tuesday.
Price talk had been for a coupon of 1% to 1.75% and an initial conversion premium of 25% to 30%.
Credit Suisse Securities (Europe) Ltd., Morgan Stanley & Co. International plc and Joh. Berenberg, Gossler & Co. KG are joint global coordinators and also joint bookrunners along with Jefferies International Ltd., according to a company release.
The €50 million greenshoe was fully exercised lifting the size of the deal to €200 million from the initially talked size of €150 million.
The notes carry a BB+ credit rating.
The convertible notes were oversubscribed shortly after launch, said Lars Schnidrig, chief financial officer of Corestate, in a news release.
“The successful placement of the convertible bond rated by Standard & Poor’s underscores our enhanced access to capital markets. As envisaged we have further diversified our funding base thereby significantly reducing our cost of capital,” Schnidrig said.
Proceeds of the deal will be used to refinance existing debt and for general corporate purposes.
The convertible bonds are non-callable until Dec. 19, 2020 and then become provisionally callable subject to a 130% hurdle. There is a clean up call if 15% or less of the principal amount of the notes is outstanding, according to a company release.
Shareholders’ pre-emptive rights are excluded, Corestate said.
The convertible bonds will be traded on the Open Market of the Frankfurt Stock Exchange and are only open to institutional investors outside the United States, Australia, Canada, Italy, and Japan, according to a company release.
Corestate is a Luxemburg-based investment manager with €22 billion in assets under management.
| Issuer: | Corestate Capital Holding SA
|
| Securities: | Convertible senior notes
|
| Amount: | €150 million
|
| Greenshoe: | €50 million
|
| Maturity: | 2022
|
| Bookrunners: | Credit Suisse Securities (Europe) Ltd., Morgan Stanley & Co. International plc and Joh. Berenberg, Gossler & Co. KG, Jefferies International Ltd.
|
| Coupon: | 1.375%
|
| Price: | Par
|
| Conversion premium: | 27.5%
|
| Conversion price: | €61.9580
|
| Call options: | Non-callable until Dec. 19, 2020 then provisionally callable subject to a 130% hurdle, clean up call if 15% or less of the principal amount of the notes is outstanding
|
| Pricing date: | Nov. 21
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| Settlement date: | Nov. 28
|
| Talk: | 1% to 1.75% yield, up 25% to 30%
|
| Stock symbol: | Xetra: CCAP
|
| Stock price: | €49.40 as of Nov. 21 close
|
| Market capitalization: | €1.04 billion
|
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