By Rebecca Melvin
New York, July 2 - Nyrstar NV priced €105 million of five-year convertible bonds at par Thursday to yield 7% with an initial conversion premium of 27.5%, according to a news release.
The Regulation S issue priced at the tight end of talk, which was for a coupon of between 7% and 7.5% and an initial conversion premium of between 22.5% and 27.5%.
There is a greenshoe for an additional €15 million.
Goldman Sachs International was the bookrunner of the offering, with ING Belgium SA/NV acting as a manager.
Proceeds are intended to strengthen balance sheet liquidity, to diversify funding and to fund organic or external growth opportunities.
Settlement is expected July 10.
If all the bonds were to be converted into new ordinary shares at the conversion price, 13.78 million new ordinary shares would be issued, representing a dilution of 13.8% of the company's ordinary share capital.
Umicore and Glencore, who hold 5.25% and 7.79% of the company's ordinary shares, support the transaction.
Application will be made to list the bonds on the official list of the Luxembourg Stock Exchange and admit the bonds to trading on the Luxembourg Stock Exchange's Euro MTF Market.
Balen, Belgium-based Nyrstar is a producer of metals, including zinc, lead and copper.
| Issuer: | Nyrstar NV
|
| Issue: | Convertible bonds
|
| Amount: | €105 million
|
| Greenshoe: | €15 million
|
| Maturity: | 2014
|
| Bookrunner: | Goldman Sachs International, with ING Belgium SA/NV as manager
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion premium: | 27.5%
|
| Conversion price: | €7.6203
|
| Price talk: | 7%-7.5%, up 22.5%-27.5%
|
| Pricing date: | July 2
|
| Settlement date: | July 10
|
| Distribution: | Regulation S
|
| Listing: | NYSE Euronext Brussels
|
| Symbol: | NYR
|
| Stock price: | €5.75
|
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