By Rebecca Melvin
New York, May 18 - Infineon Technologies Holding BV, a subsidiary of Infineon Technologies AG, priced €195.6 million of five-year convertible bonds worth of convertible bonds at a discounted price of 92.8%, taking the yield up to 8.08%.
The Regulation S bonds have a coupon of 7.5%, which came at the midpoint of talk, and with an initial conversion premium of 25%, which was the talked percentage for the initial conversion premium.
Credit Suisse Securities (Europe) Ltd. was sole bookrunner for the transaction, with Credit Suisse and quirin bank AG acting as joint lead managers, and UniCredit Group (Bayerische Hypo- und Vereinsbank AG) acting as co-lead manager.
Proceeds are expected to go toward refinancing, to enable the company to strengthen its liquidity and extend its debt maturity profile.
The bond is non-callable for 2.5 years, and provisionally callable after that subject to a 150% stock price trigger and a make-whole for the remaining coupons. Also, Infineon will post collateral equal to one coupon payment amount in a bank account for the benefit of holders.
Infineon intends to list the bonds on the open market (Freiverkehr) of the Frankfurt Stock Exchange.
Neubiberg, Germany-based Infineon is a semiconductor company.
| Issuer: | Infineon Technologies Holding BV
|
| Issue: | Convertible bonds
|
| Amount: | €195.6 million
|
| Maturity: | 2014
|
| Coupon: | 7.5%
|
| Price: | 92.8% of par
|
| Yield: | 8.08%
|
| Conversion premium: | 25%
|
| Conversion price: | €2.61
|
| Price talk: | 7%-8%, up 25%
|
| Call: | Non callable for 2.5 years, and provisionally callable thereafter at a 150% stock price trigger and make whole for remaining coupons
|
| Puts: | Change of control put
|
| Dividend protection: | Yes
|
| Bookrunner: | Credit Suisse, with quirin bank as joint lead manager, and UniCredit as co-lead manager
|
| Pricing date: | May 18
|
| Settlement: | May 26
|
| Distribution: | Regulation S
|
| Stock symbol: | Frankfurt: IFX
|
| Market capitalization: | €2.17 billion
|
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