Hungary offers up to €900 million of six-year bonds exchangeable for Gedeon Richter

By Rebecca Melvin

New York, Nov. 6 - The Hungarian National Asset Management Inc. is offering up to €900 million of six-year bonds exchangeable for shares of Gedeon Richter plc, according to a news release.

The Regulation S bonds were talked at a coupon of 3.375% to 3.875% and with a 30% to 35% initial conversion premium over the volume weighted average price of shares between launch and pricing.

Proceeds will be used to repurchase €833 million 4.4% exchangeable bonds due 2014 issued by Hungarian National Asset Management and also exchangeable into shares of Gedeon Richter. A tender offer and consent invitation will be held concurrently with the new exchangeable offering.

The new exchangeable is being managed by Deutsche Bank AG, London Branch and UniCredit Bank AG, London Branch as joint lead Managers and joint bookrunners.

Settlement is expected to take place Dec. 6.

Gedeon Richter plans to tender the €52 million of existing bonds it currently holds and subscribe for the same amount of new bonds.

Application will be made to list the new bonds on an internationally recognized stock exchange.

Gedeon is a pharmaceutical company located in Budapest, Hungary.

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