By Rebecca Melvin
New York, March 27 - OHL Investments SA, a wholly owned subsidiary of Spain's Obrascon Huarte Lain SA, priced an upsized €275 million of five-year bonds exchangeable into ordinary shares of Obrascon Mexico SAB de CV to yield 4% and with a 25% initial conversion premium over the volume-weighted average price for Obrascon Mexico shares, according to a news release.
The Regulation S exchangeables, which will be guaranteed by Obrascon Concesiones SAU, were upsized from €250 million in size.
Pricing came at the cheap end of talk, which was for a coupon of 3.25% to 4% and for an exchange premium of 25% to 30%.
There is a €25 million increase option.
JPMorgan and UBS Investment Bank are the joint lead managers.
The exchange price of €2.7189 per each share of OHL Mexico was determined considering the exchange rate of the euro to the Mexican peso on Wednesday of one Mexican peso equal to 0.063 euro.
The company can settle exchanges in Obrascon Mexico shares, cash or a combination of cash and shares.
Obrascon Concesiones will use proceeds to prepay debt.
The company plans to list the bonds on the Frankfurt Stock Exchange.
Obrascon Huarte Lain is a Madrid-based construction and engineering company.
| Issuer: | OHL Investments SA
|
| Guarantor: | Obrascon Concesiones SAU
|
| Issue: | Exchangeable bonds
|
| Amount: | €275 million, upsized from €250 million
|
| Greenshoe: | €25 million
|
| Maturity: | 2018
|
| Bookrunners: | JPMorgan, UBS Investment Bank
|
| Coupon: | 4%
|
| Price: | Par, €100,000.
|
| Yield: | 4%
|
| Initial conversion premium: | 25%
|
| Initial conversion price: | €2.7189 per each share of OHL Mexico
|
| Pricing date: | March 26
|
| Settlement date: | April 25
|
| Price talk: | 3.25%-4%, 25%-30%
|
| Distribution: | Regulation S
|
| Exchange rate: | One Mexican peso equal to 0.063 euros
|
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