Nexity calls remaining Oceanes due 2020 at €43.34 each after buyback

By Susanna Moon

Chicago, June 15 – Nexity said it will redeem the remaining convertible bonds due Jan. 1, 2020 issued in the Oceane structure in June 2014.

The outstanding Oceanes are callable because the total number outstanding is less than 15% of the number initially issued, according to a company notice.

As announced May 10, Nexity launched a repurchase offer for its €179,999,991, or 4,153,207, of the Oceanes after conducting a reverse bookbuilding.

The remaining Oceanes will be redeemed on July 15 at a price of €43.34 plus accrued interest up to the early redemption date for a total amount of €43.35 per 2014 Oceane.

Holders may exercise their conversion right to the allocation of company’s shares until July 5, which is the end of the seventh business day preceding the early redemption date, the release noted.

The conversion/exchange ratio for the 2014 Oceanes was adjusted to 1.103 shares of the company of €5 of nominal value for one Oceane, in connection with the payment of the dividend on June 7, the release added.

In the repurchase offer that ran from May 11 through May 17, the company offered to repurchase the Oceanes for €55.83 each, including accrued interest, under a centralized repurchase procedure through Caceis Corporate Trust.

The purchase price was €54.90 plus the difference of the reference share price and the closing price times the reference delta of 72%. The reference price was the VWAP of the stock on May 10, and the closing price is €46.34.

Nexity previously said its offer to buy back the Oceanes was based on the volume-weighted average trading price of Nexity’s shares on Euronext Paris on May 10.

Nexity said it has collected through a reverse bookbuilding process via joint bookrunners Societe Generale CIB, Credit Agricole CIB and J.P. Morgan indications of interest to tender 95.9% of the 2014 Oceanes. Previously, the company said it reserved 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.

The settlement and delivery of the repurchased 2014 Oceanes was to occur respectively on May 17 and May 19, subject to the settlement and delivery of the company’s newly issued 2016 Oceanes, the proceeds of which will fund the repurchases, on May 13.

Nexity previously said it reserved the right to repurchase further 2014 Oceanes, on or off market, after the centralized repurchase procedure. It also reserved the right, after completion of the repurchase, to redeem the 2014 Oceanes in accordance with their terms and conditions.

In that case, the repurchase price was to 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.

Nexity is a Paris-based real estate development company.

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