Obrascon talks €250 million of exchangeables at 3.25%-4%, up 25%-30%

By Angela McDaniels

Tacoma, Wash., March 26 - Obrascon Huarte Lain, SA plans to price €250 million of five-year bonds exchangeable into ordinary shares of Obrascon Mexico, SAB de CV, according to a company filing with the London Stock Exchange.

The exchangeables will be issued by Obrascon Investments, SA and guaranteed by Obrascon Concesiones, SAU. They will be offered to institutional investors outside the United States, Canada, Australia and Japan.

The interest rate is expected to be 3.25% to 4%, and the exchange premium is expected to be 25% to 30%.

The issue can be increased to €275 million if an increase option is exercised and to €300 million if an over-allotment option is exercised.

JPMorgan and UBS Investment Bank are the joint lead managers.

The exchangeables will be issued at par of €100,000.

The exchange price will be based on the volume-weighted average price for Obrascon Mexico shares on March 26.

The company can settle exchanges in Obrascon Mexico shares, cash or a combination of cash and shares.

The issue is expected to close April 25.

Obrascon Concesiones will use proceeds to prepay debt.

The terms and conditions of the exchangeables are subject to English Law, and the company plans to list them on the Frankfurt Stock Exchange.

Obrascon Huarte Lain is a Madrid-based construction and engineering company.

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