By Kenneth Lim
Boston, June 29 - Nexans on Thursday priced €243.8 million of seven-year 1.5% convertible unsubordinated bonds in the Oceane structure within talk to yield 3.75% with an initial conversion premium of 35%.
The bonds were sold at par of €73.80 apiece, and each Oceane is convertible into one Nexan share. Price talk guided for a yield of 3.5% to 4% and an initial conversion premium of 30% to 35% over Nexan's volume-weighted average share price on Thursday. Nexan stock closed at €56 in Euronext Paris on Thursday.
There is an over-allotment option for a further €36.2 million.
BNP Paribas and Societe Generale Corporate and Investment Banking were the bookrunners.
The convertibles are callable between 2008 and 2010 subject to a 150% threshold, and after 2010 subject to a 125% hurdle.
There is dividend protection.
Nexans, a Paris-based cable specialist, will use the proceeds of the deal to finance acquisitions as part of its external growth strategy.
| Issuer: | Nexans
|
| Issue: | Convertible unsubordinated Oceanes
|
| Bookrunners: | BNP Paribas and Societe Generale Corporate and Investment Banking
|
| Amount: | €243.8 million
|
| Greenshoe: | €36.2 million
|
| Maturity: | Jan. 1, 2013
|
| Coupon: | 1.5%
|
| Price: | Par of €73.80
|
| Redemption price: | 116.20%
|
| Yield: | 3.75%
|
| Conversion premium: | 35%
|
| Conversion price: | €73.80
|
| Conversion ratio: | 1
|
| Dividend protection: | Yes
|
| Call protection: | Callable in years two through four subject to 150% threshold, after year four subject to 125% hurdle
|
| Price talk: | 3.5%-4%, up 30%-35%
|
| Pricing date: | June 29
|
| Settlement date: | July 7
|
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