By Abigail W. Adams
Portland, Me., Feb. 27 – Nexity priced €200 million of seven-year convertibles in the Ornanes structure on Tuesday with a coupon of 0.25% and an initial conversion premium of 30%. Pricing came within coupon talk of 0% to 0.375% and at the cheap end of talk for an initial conversion premium of 30% to 37.5%.
Credit Agricole CIB, Natixis and Societe Generale CIB are joint bookrunners for the private placement, which was upsized from the initially announced €180 million.
The Ornanes are contingently convertible until April 23, 2022 and then freely convertible at any time up to the 35th trading day prior to maturity, which is Jan. 13, 2025.
The Ornanes are non-callable until April 23, 2022 then callable subject to a 130% hurdle. Holders may request an early redemption upon a change of control.
Holders will receive cash upon conversion of the bonds if the conversion value is lower than or equal to the par value of the bond.
Holders will receive cash, shares, or a combination of both, at the company’s option, if the conversion value is greater than the par value of the bond.
The conversion value will be equal to the product of the conversion ratio, initially set at 1 share per bond, on the last trading day of the calculation period and the average daily volume-weighted trading price of the company’s share over the calculation period.
Upon conversion, the company may deliver new or existing shares. New shares issued will bear dividend rights, according to a company news release. If only new shares were issued, dilution would represent 5.17% of the outstanding share capital, according to a company news release.
Nexity has agreed to a lock-up for 90 days from the issue date. The bonds will be listed on Euronext Access within 30 days of the issue date.
Nexity is a Paris-based real estate development company and provider of related services.
| Issuer: | Nexity
|
| Securities: | Ornanes
|
| Amount: | €200 million
|
| Maturity: | March 2, 2025
|
| Bookrunners: | Credit Agricole CIB, Natixis and Societe Generale CIB
|
| Coupon: | 0.25%
|
| Price: | Par
|
| Conversion premium: | 30%
|
| Conversion price: | €68.91
|
| Call options: | Non-callable for four years then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Feb. 27
|
| Settlement date: | March 2
|
| Talk: | 0% to 0.375% coupon and initial conversion premium of 30% to 37.5%
|
| Stock symbol: | EPA: NXI
|
| Stock price: | €54.05 as of the market close on Feb. 26
|
| Market capitalization: | €2.91 billion
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