By Rebecca Melvin
New York, Jan. 11 - AB Industrivarden priced €500 million of six-year senior convertible bonds at par of €50,000 on Tuesday to yield 1.875% with a 35% initial conversion premium, according to a news release.
There is an over-allotment option of up to an additional €50 million principal amount of bonds.
The Regulation S offering priced toward the rich end of coupon talk, which was 1.75% to 2.25%, and at the rich end of premium talk, which was 30% to 35%.
Morgan Stanley & Co. International plc was the bookrunner, with Handelsbanken Capital Markets as the joint lead manager.
The bonds will be convertible from March 9, 2011 into new C shares of the company listed on the Nasdaq OMX Stockholm.
The bonds are non-callable until June 22, 2014 and then provisionally callable if the value of the C shares deliverable upon conversion exceeds 130%.
Proceeds are aimed at providing greater financial flexibility to take advantage of investment opportunities.
Settlement is expected on Jan. 27, and the bonds will mature Feb. 27, 2017.
Application will be made to list the bonds on the EuroMTF Market of the Luxembourg Stock Exchange.
Stockholm-based Industrivarden is a Swedish investment company that acquires, develops and sells publicly traded companies.
| Issuer: | AB Industrivarden
|
| Issue: | Convertible bonds
|
| Amount: | €500 million
|
| Greenshoe: | €50 million
|
| Maturity: | Feb. 27, 2017
|
| Bookrunner: | Morgan Stanley & Co. International plc
|
| Joint lead manager: | Handelsbanken Capital Markets
|
| Coupon: | 1.875%
|
| Price: | Par, €50,000
|
| Yield: | 1.875%
|
| Conversion premium: | 35%
|
| Conversion price: | SEK 162.00
|
| Conversion ratio: | 8.8803
|
| Call protection: | Non-callable until June 22, 2014, and then provisionally callable at 130% price hurdle
|
| Price talk: | 1.75%-2.25%, up 30%-35%
|
| Pricing date: | Jan. 11
|
| Settlement date: | Jan. 27
|
| Distribution: | Regulation S
|
| Stock symbol: | Stockholm: INDU C
|
| Stock price: | SEK 199.00
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
