By Ronda Fears
Nashville, Jan. 26 - JPMorgan Securities sold €1.6 billion of three-year mandatory exchangeable bonds, which convert into shares of Allianz AG, at par to yield 4.5% with a lower exchange premium at 100% and upper exchange premium of 120%, according to market sources in Europe.
JPMorgan was sole bookrunner of the deal, which was part of a trio of financing measures taken by the German insurance concern. Allianz's banking unit, Dresdner Bank, sold the 17.2 million Allianz shares to JPMorgan that underlie the mandatory.
Allianz also sold €1.2 billion of three-year Bites, or Basket Index Tracking Equity-linked Securities, linked to the performance of the DAX, which can be redeemed with shares of BMW, Munich Re or Siemens at the option of Allianz. JPMorgan managed that offering.
In addition, Allianz was marketing €1 billion of perpetual senior bonds plus warrants for 11.2 million shares of Allianz stock via JPMorgan.
Allianz shares on Wednesday lost €1.66, or 1.8%, to close at €90.34 on the XETRA.
Terms of the new deal are:
| Issuer: | JPMorgan Securities
|
| Reference shares: | Allianz AG
|
| Issue: | Exchangeable bonds
|
| Bookrunners: | JPMorgan Securities
|
| Amount: | €1.6 billion
|
| Maturity: | Jan. 26, 2008
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Exchange premium: | 100% to 120%
|
| Upper exchange price: | €108.876
|
| Lower exchange price: | €90.73
|
| Exchange ratio: | 0.9185 to 1.1022
|
| Contingent conversion: | No
|
| Contingent payment: | No
|
| Call: | Non-callable
|
| Pricing date: | Jan. 26
|
|
|
© 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.
