By Evan Weinberger
New York, Nov. 30 - Fortis Bank priced €3 billion in perpetual Convertible And Subordinated Hybrid Equity-linked Securities (Cashes) with a three-month Euribor plus 200 basis points and a 30% initial conversion premium Friday.
The deal came in at the middle of coupon talk, which had been three-month Euribor plus 175 to 250 bps and at the cheap end of conversion premium talk, which was 30% to 35%.
JPMorgan and Merrill Lynch International are bookrunners and Fortis is the co-bookrunner of the Regulation S transaction. The deal is expected to close Dec. 19.
The exchange price is €23.94.
Holders of the Cashes will be able to convert them beginning 40 days after their issuance. The Cashes will be automatically exchanged beginning seven years after issuance subject to a 150% hurdle. The Cashes have full takeover protection.
Fortis is a bank headquartered in Brussels and Utrecht, the Netherlands. The Cashes are the last piece of the financing for Fortis's takeover of ABN Amro.
| Issuer: | Fortis Bank
|
| Issue: | Convertible And Subordinated Hybrid Equity-linked Securities (Cashes)
|
| Amount: | €3 billion
|
| Maturity: | Perpetual
|
| Coupon: | Three-month Euribor plus 200 bps
|
| Price: | Par
|
| Conversion premium: | 30%
|
| Exchange price: | €23.94
|
| Forced conversion: | Automatic exchange after seven years subject to 150% hurdle
|
| Bookrunner: | JPMorgan, Merrill Lynch
|
| Distribution: | Regulation S
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| Pricing date: | Nov. 30
|
| Settlement date: | Dec. 19
|
| Talk: | Three-month Euribor plus 1.75% to 2.5% coupon, 30% to 35% conversion premium
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