Fonciere des Regions launches up to €550 million six-year convertibles

By Rebecca Melvin

New York, May 16 - Fonciere des Regions SA launched €480 million to €550 million of six-year convertible bonds in the Ornane structure to yield a rate based on minus 0.15% to plus 0.35% of the five- and six-year euro swap rates and with an initial conversion premium of 20% to 25%, according to a news release.

The reference rate will be equal to the 5.61-year linearly interpolated mid-swap rate based on the five- and six-year euro mid-swap rates as they appear on indices on Wednesday.

Bank of America Merrill Lynch, HSBC, Lazard-Natixis and UniCredit are joint bookrunners of the Regulation S offering.

Proceeds will be used to diversify the company's funding sources and to extend its debt maturity profile, including refinancing existing credit facilities and for general corporate purposes.

Shareholders as of May 13 are entitled to subscribe to the offer during a priority subscription period of three trading days until Wednesday.

Delfin, which holds 28.92% of the company's share capital as of the time of the prospectus, plans to subscribe to the issue during the priority subscription.

Metz, France-based Fonciere des Regions owns and manages real estate properties.

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