By Marisa Wong
Madison, Wis., Nov. 12 - Fonciere des Regions announced it priced €345 million of 0.875% convertible bonds due 2019 at par in an offering on Tuesday.
The company offered €300 million of the Ornanes (BBB-//) with an over-allotment option that was fully exercised.
BofA Merrill Lynch, Credit Agricole Corporate and Investment Bank, HSBC and Natixis acted as joint lead managers and joint bookrunners.
The bonds have a par value of €84.73, which is a 32.5% premium over the €63.9503 closing price of the company's stock on Tuesday.
The bonds were talked at 0.875% to 1.625% with an issue premium of 27.5% to 32.5%.
The bonds are callable beginning on May 1, 2017 if the average of the products of the company's stock price and the then current conversion ratio over a specified period exceeds 130% of par.
Proceeds will be used to refinance existing debt for an amount of about €170 million. The company said it also intends to use €110 million of the proceeds to repurchase some of its outstanding Ornanes issued in May 2011. Remaining funds will be used for general corporate purposes.
Settlement is expected to take place on Nov. 20.
The real estate company is based in Paris.
| Issuer: | Fonciere des Regions
|
| Issue: | Convertible bonds (Ornane)
|
| Amount: | €345 million
|
| Maturity: | April 1, 2019
|
| Coupon: | 0.875%
|
| Price: | Par of €84.73
|
| Yield: | 0.875%
|
| Premium: | 32.5%
|
| Call option: | Beginning on May 1, 2017 if average of products of company's stock price and then current conversion ratio over a specified period exceeds 130% of par
|
| Bookunners: | BofA Merrill Lynch, Credit Agricole Corporate and Investment Bank, HSBC and Natixis
|
| Pricing date: | Nov. 12
|
| Settlement date: | Nov. 20
|
| Price talk: | 0.875%-1.625%, up 27.5%-32.5%
|
| Rating: | Standard & Poor's: BBB-
|
| Stock symbol: | Paris: FDR
|
| Stock price: | €63.9503 at close Nov. 12
|
| Market capitalization: | €4.02 billion
|
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