OCI to price €300 million five-year convertible bonds to yield 3.375%-3.875%, up 27.5%-32.5%

By Rebecca Melvin

New York, Sept. 18 - OCI NV plans to price €300 million of five-year senior convertible bonds at par that were talked to yield 3.375% to 3.875% with an initial conversion premium of 27.5% to 32.5%, according to a news release.

OCI is concurrently pricing up to €150 million of equity. The ordinary shares will be offered under Regulation S and Rule 144A, but the convertibles will be offered under Regulation S only.

There is a €50 million greenshoe for the bond offering.

Barclays Bank plc and J.P. Morgan Securities plc are acting as joint bookrunners and joint lead managers of the deal.

Proceeds of the offerings are earmarked for general corporate purposes, including financing previously announced exchange offers, extending its existing maturity profile and repaying existing debt.

Settlement of the bonds is expected by Sept. 25, and the company plans to apply for listing on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange.

The Sawiris family, principal shareholder and collective owner of about 57% of the ordinary shares, intends to place an order in the equity offering.

OCI is a Netherlands-based nitrogen-based fertilizer producer and engineering & construction contractor.

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