J Sainsbury trims conversion price of perpetuals, 1.25% convertibles

By Susanna Moon

Chicago, Nov. 17 – J Sainsbury plc said it lowered the conversion prices of its £250 million perpetual subordinated convertible bonds and its £450 million 1.25% convertible bonds due 2019 as the result of a planned dividend payout.

For the perpetuals, the conversion price was reduced to 327.4615p from 332.4921p, and for the 1.25% convertibles, the conversion price was lowered to 321.4744p from 326.4131p, each effective Thursday.

The adjustment is due to the company’s plans to pay an interim dividend of 3.6p per share on Jan. 4, according to two separate company notices.

The bond terms require the conversion prices to be adjusted if the company pays a dividend to the shareholders, provided that the adjustment would be equal to or more than 1% of the conversion price, the company explained.

The conversion agent is Bank of New York Mellon, London Branch.

Sainsbury is a London-based supermarket chain.

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