By Rebecca Melvin
New York, May 14 - Australia's Alumina Ltd. priced an upsized $350 million of five-year convertible bonds to yield 2% with an initial conversion premium of 31%, according to a company news release.
Initially the offering was expected to total about $300 million.
Goldman Sachs International is the bookrunner of the Regulation S offering, which will be issued by the company's wholly owned finance subsidiary, Alumina Finance Ltd.
Alumina, a 40% partner in Alcoa World Alumina and Chemicals, plans to use proceeds to replace existing bank debt and to fund Alumina's investment in current growth projects with AWAC partner Alcoa.
The bonds are expected to be listed on Singapore Exchange Securities Trading Ltd.
Melbourne, Australia-based Alumina is involved in worldwide bauxite mining activities.
| Issuer: | Alumina Finance Ltd. for Alumina Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | $350 million, upsized from about $300 million
|
| Maturity: | May 16, 2013
|
| Bookrunner: | Goldman Sachs International
|
| Coupon: | 2%
|
| Price: | Par
|
| Yield: | 2%
|
| Conversion premium: | 31%
|
| Conversion price: | A$8.35
|
| Call: | Non-callable until 2011, then provisionally callable at a 130% hurdle
|
| Puts: | In year 2011
|
| Takeover protection: | Yes
|
| Pricing date: | May 14
|
| Settlement date: | May 31
|
| Distribution: | Regulation S
|
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