By Rebecca Melvin
New York, Sept. 1 – Inmarsat plc priced an upsized $650 million of seven-year convertible bonds at par to yield 3.875% with an initial conversion premium of 32.5% late Wednesday, according to a news release.
Initially the Regulation S deal was talked at a base deal of $550 million with a $50 million upsize option. Pricing came toward the rich end of 3.625% to 4.125% coupon talk and at the midpoint of 30% to 35% premium talk.
Joint bookrunners are Credit Suisse and J.P. Morgan Cazenove. BofA Merrill Lynch is a co-bookrunner.
The bonds are non-callable for five years and then provisionally callable if shares exceed 140% of the conversion price for at least 20 out of 30 consecutive dealing days.
Conversions will be net share settled to minimize dilution.
Proceeds will be used to repurchase about $390 million of the company’s outstanding 1.75% convertible bonds due 2017. Initially the company said about 287.7 million of the proceeds would be used for those repurchases. Remaining proceeds will be used to strengthen Inmarsat’s financial position and support continued investment strategies.
Inmarsat plans to list the new bonds on the Channel Islands Securities Exchange or another recognized stock exchange and the Open Market of the Frankfurt Stock Exchange prior to the first interest payment date.
Inmarsat also plans to launch a further benchmark offering in the debt capital markets this year, subject to market conditions.
Inmarsat is a London-based mobile communications company.
| Issuer: | Inmarsat plc
|
| Issue: | Convertible bonds
|
| Amount: | $650 million, upsized from $550 million with $50 million upsize option
|
| Maturity: | Sept. 9, 2023
|
| Bookrunners: | Credit Suisse and JPMorgan Cazenove
|
| Co-bookrunner: | BofA Merrill Lynch
|
| Coupon: | 3.875%
|
| Price: | Par
|
| Yield: | 3.875%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $13.4093
|
| Call: | Non-callable for five years, then provisionally callable at 140% price hurdle
|
| Net share settlement: | Yes
|
| Price talk: | 3.625%-4.125%, up 30%-35%
|
| Pricing date: | Aug. 31
|
| Settlement date: | Sept. 9
|
| Stock symbol: | London: ISAT
|
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