By Rebecca Melvin
New York, March 25 – Heidelberger Druckmaschinen AG launched and priced €58.6 million of seven-year convertible bonds on Wednesday at par to yield 5.25% with an initial conversion premium of 30%, according to a news release.
The initial conversion price for the bonds is €3.11.
Pricing of the Regulation S deal came through the rich end of 5.5% to 6.5% coupon talk and at the rich end of 25% to 30% talk for the premium.
The bonds are non-callable until April 20, 2018 and then are provisionally callable if shares exceed 130% of the conversion price. Holders can put the bonds on March 30, 2020.
Deutsche Bank, BNP Paribas, Commerzbank and LBBE were the joint bookrunners and joint lead managers of the deal, and DZ Bank and IKB Deutsche Industriebank were co-lead managers.
Proceeds will be used to partially redeem an outstanding high-yield bond.
The company plans to list the bonds on the open market of the Frankfurt Stock Exchange.
The Heidelberg, Germany-based company makes printing equipment.
| Issuer: | Heidelberger Druckmaschinen AG
|
| Issue: | Convertible bonds
|
| Amount: | €58.6 million
|
| Maturity: | March 2022
|
| Bookrunners: | Deutsche Bank, BNP Paribas, Commerzbank and LBBE
|
| Co-lead managers: | DZ Bank and IKB Deutsche Industriebank
|
| Coupon: | 5.25%
|
| Price: | Par
|
| Yield: | 5.25%
|
| Conversion premium: | 30%
|
| Conversion price: | €3.11
|
| Price talk: | 5.5%-6.5%, up 25%-30%
|
| Call feature: | Provisionally callable beginning April 20, 2018 if shares exceed 130% of conversion price
|
| Put option: | March 20, 2020
|
| Pricing date: | March 25
|
| Settlement date: | March 30
|
| Stock symbol: | Frankfurt: HDD
|
| Stock reference price: | €2.40, at close March 25
|
| Distribution: | Regulation S
|
| Market capitalization: | €617.85 million
|
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