New Issue: OIAG €300 million exchangeable into Telekom Austria yields 1.25%, up 28.21%

By Ronda Fears

Nashville, July 24 - The Austrian state-owned firm OIAG sold €300 million of three-year exchangeable bonds that convert into Telekom Austria AG shares Thursday at par to yield 1.25% with a 28.21% initial conversion premium via joint lead managers JPMorgan and Merrill Lynch.

The deal sold at the cheap end of guidance which put the yield at 0.5 to 1.25% with a 28.21% to 30.67% conversion premium.

Terms of the new deal are:

Issuer: OIAG

Reference shares:	Telekom Austria AG
Issue:	Exchangeable bonds
Joint lead managers:	JPMorgan, Merrill Lynch
Amount	€300 million
Maturity:	Aug. 18, 2006
Coupon:	1.25%
Price:	Par
Yield:	1.25%
Conversion premium:	28.21%
Conversion price:	€13.00
Conversion ratio:	76.923
Call:	Non-callable
Price talk:	0.5-1.25%, up 28.21-30.67%
Pricing date:	July 24
Settlement:	Aug. 18

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