By Kenneth Lim
Boston, June 20 - Finland's Nokian Tyres plc priced €130.4 million of seven-year zero-coupon convertible bonds within talk on Wednesday to yield 3% with an initial conversion premium of 40%, the company said in a statement.
The convertibles were offered at par of €100,000 each. Price talk was for a yield of 2.5% to 3% and an initial conversion premium of 35% to 40%.
There is an over-allotment option for a further €19.6 million.
Nomura International was the bookrunner of the Regulation S offering.
The convertibles are non-callable for the first four years, after which they may be called subject to a hurdle at 130% of the conversion price.
Nokian, a Nokia, Finland-based tire maker, said the proceeds of the deal will finance investments, refinance existing debt and fund general corporate purposes.
| Issuer: | Nokian Tyres plc
|
| Issue: | Convertible bonds
|
| Bookrunner: | Nomura International
|
| Amount: | €130.4 million
|
| Greenshoe: | €19.6 million
|
| Maturity: | June 27, 2014
|
| Coupon: | 0%
|
| Price: | Par of €100,000
|
| Redemption price: | 123%
|
| Yield: | 3%
|
| Conversion premium: | 40%
|
| Conversion price: | €37.43
|
| Conversion ratio: | 2,672
|
| Call protection: | Non-callable before June 27, 2011, thereafter subject to hurdle at 130% of conversion price
|
| Pricing date: | June 20
|
| Settlement date: | June 27
|
| Distribution: | Regulation S
|
| Guidance: | 2.5%-3% yield; 35%-40% premium
|
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