By Rebecca Melvin
New York, May 8 - AB Industrivarden has priced SEK 4.4 billion of 0% five-year bonds, exchangeable into shares of ICA Gruppen AB, with an initial exchange premium of 38%, according to a news release.
Pricing came at the rich end of 0% to 0.75% coupon talk and beyond the rich end of 30% to 35% premium talk based on a reference price that was the volume weighted average price of ICA shares on NasdaqOMX Stockholm between launch and pricing.
A SEK 400 million greenshoe was exercised concurrently with the SEK 4 billion base deal.
Deutsche Bank AG, London Branch and Morgan Stanley & Co. International plc were acting as joint bookrunners of the Regulation S offering.
The bonds are exchangeable at an initial price of SEK 300.00. They are non-callable for about four years and then provisionally callable if shares exceed 130% of the conversion price.
Holders can put the bonds on May 15, 2018, and they may be exchanged for shares or cash.
Proceeds will be used for refinancing Industrivarden's debt portfolio.
Settlement is expected on May 15, and the bonds will mature May 15, 2019.
Application will be made to list the bonds on a public exchange.
Stockholm-based Industrivarden is an investment company that acquires, develops and sells publicly traded companies.
ICA Gruppen is a Swedish food retailer.
| Issuer: | AB Industrivarden
|
| Issue: | Exchangeable bonds
|
| Exchange entity: | ICA Gruppen AB
|
| Amount: | SEK 4.4 billion, including exercised SEK 400 million greenshoe
|
| Maturity: | May 15, 2019
|
| Bookrunners: | Deutsche Bank AG, London Branch and Morgan Stanley & Co. International plc
|
| Coupon: | 0%
|
| Price: | Par
|
| Conversion premium: | 38%
|
| Conversion price: | SEK 300.00
|
| Call protection: | Non-callable for four years, and then provisionally callable at 130% price hurdle
|
| Puts: | May 15, 2018
|
| Price talk: | 0%-0.75%, up 30%-35%
|
| Pricing date: | May 8
|
| Settlement date: | May 15
|
| Distribution: | Regulation S
|
| Stock symbol: | Stockholm: ICAA
|
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