By Rebecca Melvin
New York, March 28 - Drillisch AG priced €125 million of five-year bonds exchangeable into existing ordinary shares of freenet AG at par to yield 3.375% with an initial conversion premium of 22.5%, according to a news release Wednesday.
The Regulation S deal priced at the cheap end of talk, which was for a coupon of 2.625% to 3.375% and an initial conversion premium of 22.5% to 30%.
There is a €12.5 million greenshoe to cover over allotments, and the deal was sold via joint bookrunners Bank of Ameica Merrill Lynch and Commerzbank.
The bonds are non-callable until April 27, 2015 and then provisionally callable at a price hurdle for freenet shares of 130%.
Holders can put the bonds after three years at principal plus interest.
The transaction diversifies Drillisch's funding sources and increases its financial and strategic flexibility. Proceeds will be used for refinancing existing debt and for general corporate purposes.
Drillisch plans to list the bonds on the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange.
Drillisch is a German mobile services provider based in Maintal, Germany, and freenet is a German telecommunications and web content provider based in Budelsdorf, Germany.
| Issuer: | Drillisch AG
|
| Exchange entity: | freenet AG
|
| Issue: | Senior exchangeable bonds
|
| Amount: | €125 million
|
| Greenshoe: | €12.5 million
|
| Maturity: | April 27, 2017
|
| Bookrunners: | Bank of America Merrill Lynch, Commerzbank
|
| Coupon: | 3.375%
|
| Price: | Par, €100,000
|
| Yield: | 3.375%
|
| Conversion premium: | 22.5%
|
| Conversion price: | €14.7719
|
| Price talk: | 2.625%-3.375%, up 22.5%-30%
|
| Calls: | Non-callable until April 27, 2015, then provisionally callable at a price hurdle of freenet shares of 130%
|
| Puts: | Yes, at year three
|
| Pricing date: | March 28
|
| Settlement date: | April 5
|
| Stock reference price: | €12.0587
|
| Stock symbol: | Germany: FNTN
|
| Distribution: | Regulation S
|
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