Abengoa plans about $300 million two-year exchangeable notes to yield 4.375%-5.125%, up 20%-25%

By Rebecca Melvin

New York, Feb. 25 – Abengoa SA plans to price about $300 million of two-year notes, which are exchangeable into shares of Abengoa Yield plc.

The Regulation S and Rule 144A notes were talked to yield 4.375% to 5.125% with an initial conversion premium of 20% to 25%.

Pricing was expected to occur Thursday after the market close, according to a market source.

Joint bookrunners are Citigroup Global Markets Inc. and BofA Merrill Lynch, both acting as global coordinators, along with bookrunners HSBC and Morgan Stanley.

The notes will be non-callable with full dividend protection and takeover protection via a standard euromarket make whole.

Proceeds will be used to strengthen the company’s liquidity position and repay short-term debt.

Application will be made to list the notes on the third market of the Vienna Stock Exchange.

Seville, Spain-based Abengoa is an industrial and technology group.

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