New York, April 4 - Pechiney SA upsized its offering of convertible bonds to 517.5 million from 450 million and priced it Wednesday at a yield of 3.25% and an initial conversion premium of 28%.
Pechiney said the offering of "Oc้anes" was seven times oversubscribed.
The deal came towards the rich end of talk that put the yield at 3.125% to 3.625% and the conversion premium at 25% to 30%.
Bookrunners for the offering were JP Morgan and BNP Paribas.
The convertibles are being sold publicly in France and as a private placement to international institutional investors. No securities were sold in the Canada, Japan or Australia and the offering was not registered in the U.S.
Pechiney said the offering will allow it to reduce its interest costs.
Proceeds will be used to "improve the structure" of Pechiney's debt by lengthening maturities, diversifying its lender base and reducing costs and to finance growth projects including the company's AP50 smelter.
| Issuer: | Pechiney SA
|
| Amount: | 517.5 million
|
| Greenshoe: | 77.5 million
|
| Maturity: | Jan. 1, 2007
|
| Coupon: | 1.25%, payable annually beginning Jan. 1, 2003 (short first coupon)
|
| Price: | Par of 75.25
|
| Redemption price at maturity: | 110.05% (82.81)
|
| Yield: | 3.25%
|
| Initial conversion premium | 28%
|
| Conversion price: | 75.25
|
| Conversion ratio: | 1
|
| Call: | Jan. 1, 2005 onwards if stock price exceeds 130% of call price
|
| Settlement: | April 11
|
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