Nexity begins buyback bookbuilding for €180 million Oceanes due 2020

By Susanna Moon

Chicago, May 10 – Nexity said it began a reverse bookbuilding to repurchase its €179,999,991, or 4,153,207, of convertible bonds due Jan. 1, 2020 issued in the Oceane structure in June 2014.

Nexity is offering to buy back the Oceanes based on the volume-weighted average trading price of Nexity’s share on Euronext Paris on May 10, according to a company notice.

The purchase price would be €54.90 plus the difference of the reference share price and the closing price times the reference delta of 72%. The reference price is the VWAP of the stock on Tuesday and the closing price is €46.34.

Settlement has been set for May 17.

The company said it reserves the right not to proceed with the repurchase if indications of interests received from holders is less than 50% of the number of 2014 Oceanes issued.

On the other hand, if the company goes through with the repurchase and the number of 2014 Oceanes tendered represents more than 20% of the number of Oceanes issued, the company said it will launch a repurchase offer centralized by Caceis Corporate Trust, for the 2014 Oceanes from May 11 through May 17, with settlement on May 19, in order to ensure that all 2014 Oceane holders are treated equally.

The repurchased Oceanes will be canceled.

The company said it may repurchase more 2014 Oceanes on or off market after the centralized repurchase procedure. If the company repurchases additional blocks of 2014 Oceanes representing at least 10% of the amount initially issued, however, the company plans to launch, within two trading days following the last repurchase forming part of a 10% tranche, a new repurchase for at least five consecutive trading days.

The repurchase price will be equal to the sum of the highest purchase price less accrued interest of the repurchases carried out during the last 12 months and accrued interest from the last interest payment date preceding the repurchase date to this date, the release noted.

The company also reserves the right, after completion of the centralized repurchase procedure, to exercise its right to redeem the 2014 Oceanes.

The company said it began an offering for €225 million of convertibles due Jan. 1, 2023 in the Oceane structure.

The issue is intended to extend the maturity of Nexity’s debt by financing the repurchase of the 2014 Oceanes as well as for general financing needs.

Interest on the 2016 Oceanes will be between 0.125% and 0.625%.

The 2016 Oceanes will be issued at par on May 13.

Nexity is a Paris-based real estate development company.

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