By Rebecca Melvin
New York, June 12 - Alliance Oil Co. Ltd. priced an upsized $265 million of five-year convertible bonds at par to yield a coupon of 7.25% with an initial conversion premium of 27.5%, according to a news release.
The Regulation S bonds priced at the cheap end of talk for the coupon, which was 6.75% to 7.5%, and at the midpoint of talk for the premium, which was 25% to 30%.
The offering was upsized by $40 million from an initially talked $225 million. There is a $35 million greenshoe, which was upsized from $25 million.
Alliance Oil, formerly West Siberian Resources Ltd., also priced $125 million of common stock in the form of Swedish Depositary Receipts. There is a $15 million greenshoe on the SDRs, which were priced at SEK 95.0 and are listed on the Nasdaq OMX Nordic.
The bonds are convertible into the SDRs at an initial conversion price of SEK 121.1250 per share.
Merrill Lynch International and Morgan Stanley & Co. International plc were joint bookrunners and joint lead managers for the convertibles, with Carnegie Investment Bank AB and VTB Capital plc acting as co-lead managers.
The bonds, which are expected to be listed on the Luxembourg Stock Exchange, are non-callable for three years and then provisionally callable at a 130% price hurdle.
Proceeds from both offerings are intended to strengthen the company's balance sheet and liquidity, reduce short-term debt and provide additional flexibility for both organic growth and potential acquisitions.
Alliance Oil is a Russian oil company based in Moscow.
| Issuer: | Alliance Oil Co. Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | $265 million, upsized from $225 million
|
| Greenshoe: | $35 million, upsized from $25 million
|
| Maturity: | June 12, 2014
|
| Bookrunners: | Merrill Lynch International and Morgan Stanley & Co. International plc
|
| Co-lead managers: | Carnegie Investment Bank AB and VTB Capital plc
|
| Concurrent offering: | $125 million of Swedish Depositary Receipts
|
| Coupon: | 7.25%
|
| Price: | Par
|
| Yield: | 7.25%
|
| Conversion premium: | 27.5%
|
| Conversion price: | SEK 121.1250
|
| Price talk: | 6.75%-7.5%, up 25%-30%
|
| Calls: | Non-callable until 2012 and then provisionally callable at 130% price hurdle
|
| Pricing date: | June 11
|
| Settlement date: | July 16
|
| Distribution: | Regulation S
|
| Stock listing: | Nasdaq OMX Nordic
|
| Bond listing: | The unregulated Euro MTF of the Luxembourg Stock Exchange
|
| Stock reference: | SEK 95.0
|
© 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.
