By Ronda Fears
Nashville, June 3 - Alcatel sold €1 billion of 7.5-year convertible bonds at par of 16.18 to yield 4.75% with a 100% initial conversion premium via joint lead managers Credit Suisse First Boston and Societe Generale.
The quick-sale deal terms were amended to reduce the maturity to 7.5 years from 10 years and call protection was boosted to five years from four.
The French telecom equipment company said up to €525 million of proceeds would be used to repurchase bonds maturing in 2004 and 2005 and possibly other debt.
At the final terms, Deutsche Bank Securities analysts put the deal 4.54% cheap, using a credit spread of 450 basis points over Libor and a 60% stock volatility. With the longer maturity and shorter call protection, Deutsche put it 0.35% cheap.
Terms of the deal are:
Issuer: Alcatel
Joint lead managers: Credit Suisse First Boston and Societe Generale
Amount €1 billion
| Greenshoe: | €150 million
|
| Maturity: | Jan. 1, 2011
|
| Coupon: | 4.75%
|
| Price: | Par of 16.18
|
| Redemption Price: | Par
|
| Yield: | 4.75%
|
| Conversion premium: | 100%
|
| Conversion price: | €16.18
|
| Conversion ratio: | 1.00
|
| Call: | Non-callable for 5 years, then with 125% hurdle
|
| Settlement: | June 13
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
