By Rebecca Melvin
New York, June 26 - Alcatel-Lucent launched and priced €547.8 million of five-year convertible bonds in the Oceane structure at par on Wednesday to yield 4.25%, with an initial conversion premium of 37%, according to a syndicate source.
Pricing of the Regulation S offering came at the rich end of talk, which was for a 4.25% to 5% coupon and 30% to 37% premium over the volume weighed price of its Euronext Paris-listed shares between launch and pricing.
The €1.3154 reference price was slightly lower than the stock's previous close.
There is an over-allotment option for up to an additional €81.1 million of bonds.
Deutsche Bank is global coordinator for the offering and is a lead manager and bookrunner along with Crédit Agricole Corporate and Investment Bank and Morgan Stanley.
The bonds are non-callable for three years until Aug. 1, 2016, and then provisionally callable if the underlying shares trade above 130% of the conversion price.
Proceeds will be used to repay debt including the company's old convertible bonds.
Standard & Poor's has rated the bonds CCC.
Paris-based Alcatel-Lucent provides solutions to deliver voice, data and video communication services to end-users.
| Issuer: | Alcatel-Lucent
|
| Issue: | Convertible bonds in Oceane structure
|
| Joint bookrunners: | Deutsche Bank, Crédit Agricole Corporate and Investment Bank and Morgan Stanley
|
| Amount: | €547.8 million
|
| Greenshoe: | €81.1 million
|
| Maturity: | July 1, 2018
|
| Coupon: | 4.25%
|
| Price: | Par
|
| Yield: | 4.25%
|
| Price talk: | 4.25%-5%, up 30%-37%
|
| Conversion premium: | 37%
|
| Conversion price: | €1.80
|
| Conversion ratio: | 1.00 share per bond
|
| Calls: | Non-callable until Aug. 1, 2016, then provisionally callable at 130% price hurdle
|
| Pricing date: | June 26
|
| Issue date: | July 3
|
| Distribution: | Regulation S
|
| Stock symbol: | Euronext Paris: ALU
|
| Stock reference price: | €1.3154
|
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