Essilor €248-€295 million convertibles talked to yield 2.125-2.625%, up 37-42%

By Ronda Fears

Nashville, June 17- Essilor International launched a seven-year convertible bond for €248 million to €295 million talked to yield 2.125% to 2.625% with a 37% to 42% initial conversion premium.

The deal, via joint bookrunners Credit Agricole Indosuez Lazard and Barclays Capital Markets, is scheduled to price Friday.

The 1.5% coupon can be deferred.

The redemption price at maturity is 104.7 to 108.5.

The bonds will be non-callable for five years, then with a 130% hurdle. There is a put in year five as well.

Deutsche Bank Securities analysts put the deal 1.71% rich to 1.59% cheap, at the middle of guidance, using a credit spread of 80 basis points over Libor and a 25% stock volatility. The valuation also accounted for a 1.6% dividend yield on the underlying shares.

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