By Rebecca Melvin
New York, June 11 – Neopost launched and priced €265 million of undated convertible bonds at par on Thursday to yield 3.375% for the first seven years and a floating rate thereafter, with an initial conversion premium of 40%, according to a news release.
After June 15, 2022, the bonds will bear interest at a rate equal to the six-month euribor rate plus 800 basis points.
The Regulation S issue, which was initially talked at €250 million to €300 million in size, priced at the cheap end of talk, which was for a coupon of 2.625% to 3.375% for the first seven years and an initial conversion premium of 40% to 47.5%.
The bonds are non-callable until June 16, 2022. Holders can convert the bonds for either cash or a combination of cash and shares, or only shares, at the company’s option.
The bonds have dividend protection via a rate increase from June 16, 2022. In the event of a change of control, the annual rate will be increased by 500 bps.
Credit Agricole CIB and BNP Paribas were joint lead managers and joint bookrunners. Commerzbank was also a joint lead manager.
Proceeds are aimed at increasing the company’s debt maturity profile, funding general financing needs, including growth investments, and strengthening its balance sheet.
The company intends to list the bonds on the open market of the Frankfurt Stock Exchange.
Paris-based Neopost is a manufacturer of postage meters and mailroom equipment.
| Issuer: | Neopost
|
| Issue: | Convertible bonds
|
| Amount: | €265 million
|
| Maturity: | Undated
|
| Joint lead managers: | Credit Agricole CIB, BNP Paribas, Commerzbank
|
| Coupon: | 3.375% until June 2022, then six-month euribor plus 800 bps
|
| Price: | Par, €57.77
|
| Conversion premium: | 40%
|
| Conversion price: | €57.77
|
| Call: | Non-callable until June 16, 2022
|
| Price talk: | 2.625%-3.375%, up 40%-40.7%
|
| Pricing date: | June 11
|
| Distribution: | Regulation S
|
| Stock symbol: | Euronext Paris: NEO
|
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