By Abigail W. Adams
Portland, Me., Feb. 17 – Fomento Economico Mexicano SAB de CV (Femsa) priced €500 million three-year bonds exchangeable for Heineken Holding NV shares on Friday at par at the midpoint of talk with a coupon of 2.625% and an initial exchange premium of 27.5%, according to a company news release.
Price talk was for a coupon of 2.375% to 2.875% and an initial exchange premium of 25% to 30%.
BofA Securities, Goldman Sachs International and Morgan Stanley were joint bookrunners for the Regulation S offering.
The bonds are non-callable for two years and then subject to a 130% hurdle.
The company will settle the notes in cash, shares or a combination of both.
The bookrunners organized a simultaneous placement of Heineken shares to facilitate hedging activity at €75.
Concurrently, Femsa subsidiary CB Equity LLP priced a secondary offering of 20,879,120 shares of Heineken NV at €91 and 17,333,518 shares of Heineken Holding NV at €75 with investors given the opportunity to acquire shares in either.
Heineken NV purchased at least €707 million of shares of Heineken NV and €296 million of shares of Heineken Holding NV.
L’Arche Green NV, which the Heineken Family uses to exercise control over Heineken Holding NV, also participated in the equity offering.
Proceeds will be used for general corporate purposes and liability management exercises.
Femsa is a Monterrey, Mexico-based beverage and retail company.
| Issuer: | Fomento Economico Mexicano SAB de CV
|
| Exchange entity: | Heineken Holding NV shares
|
| Amount: | €500 million
|
| Issue: | Senior unsecured exchangeable bonds
|
| Tenor: | Three years
|
| Bookrunners: | BofA Securities, Goldman Sachs International and Morgan Stanley
|
| Coupon: | 2.625%
|
| Price: | Par
|
| Yield: | 2.625%
|
| Exchange premium: | 27.5%
|
| Exchange price: | €95.625
|
| Exchange rate: | 5.2 million shares underlying offering
|
| Call options: | Non-callable for two years and then subject to a 130% hurdle
|
| Pricing date: | Feb. 17
|
| Settlement date: | Feb. 24
|
| Distribution: | Regulation S
|
| Talk: | Coupon of 2.375% to 2.875% and initial exchange premium of 25% to 30%
|
| Stock symbol: | NA: HEIO
|
| Stock reference price: | €75 in concurrent offering
|
| Market capitalization: | €22.308 billion
|
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