By Kenneth Lim
Boston, May 19 - Orco Property Group SA on Friday sold €150 million seven-year 1% convertible bonds at €138 apiece, giving a yield of 5.65% and an initial conversion premium of 48.39% over Friday's closing stock price.
Each bond may be converted into one share, and will be redeemed upon maturity at 138.62% of parity if not converted. Orco stock, which is listed on Euronext Paris, closed at €93 on Thursday before the offer was priced.
There is a greenshoe for a further €22.5 million.
AMM Finance was the bookrunner of the deal.
The convertibles are non-callable for the first two years. They may be called after that subject to a 130% price hurdle.
There is dividend and takeover protection.
The convertibles will be listed in Paris.
Orco, a Luxembourg-based real estate developer that focuses on Central and Eastern European markets, said it will use the proceeds of the deal to finance external growth and partly refinance existing debt.
| Issuer: | Orco Property Group SA
|
| Issue: | Convertible bonds
|
| Bookrunner: | AMM Finance
|
| Amount: | €150 million
|
| Greenshoe: | €22.5 million
|
| Maturity: | May 31, 2013
|
| Coupon: | 1%
|
| Price: | €138
|
| Redemption price: | 138.62% of par
|
| Yield: | 5.65%
|
| Conversion premium: | 48.39%
|
| Conversion price: | €138
|
| Conversion ratio: | 1
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable 2 years, thereafter callable subject to 130% threshold
|
| Pricing date: | May 18
|
| Settlement date: | June 1
|
| Listing: | Euronext Paris
|
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