By Evan Weinberger
New York, Nov. 16 - Inmarsat plc priced an upsized $287.7 million in 1.75% convertible bonds due Nov. 16, 2017 talked to yield 4.5% with a conversion premium of 32.5% Wednesday.
The yield came in at the rich end of talk, which had been 4.5% to 5% and beyond conversion premium talk, which had been 25% to 30%. The deal was originally announced at $265 million.
JPMorgan Cazenove and Lehman Brothers International (Europe) are joint bookrunners of the Regulation S transaction. The settlement date is Nov. 16.
The conversion price is $12.69 and a total of 22.66 million shares will be issued on conversion.
The convertibles are callable in 2014 and there are put options in 2012 and 2014.
Inmarsat is a London-based mobile communications company. Inmarsat plans to use the proceeds to fund a loan that Inmarsat Finance III Ltd. agreed to give to CIP UK Holdings Ltd. CIP UK will then give the proceeds to CIP Canada Investment Inc. for its acquisition of Stratos Global Corp.
Issuer: Inmarsat plc
Issue: Convertible bonds
Amount $265 million
Maturity: Nov. 16, 2027
Coupon: 1.75%
Price: Par
Yield: 4.5%
Conversion premium: 32.5%
Conversion price: $12.69
| Total shares at conversion: | 22.66 million
|
| Call: | 2014
|
| Put: | 2012, 2014
|
| Bookrunner: | JPMorgan Cazenove and Lehman Brothers International (Europe)
|
| Pricing date: | Nov. 14
|
| Settlement date: | Nov. 16
|
| Talk: | 4.5%-5% yield, 25%-30% conversion premium
|
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