By Rebecca Melvin
New York, June 4 - RAG-Stiftung priced an upsized €600 million of 4.5-year bonds exchangeable into shares of Evonik Industries AG, according to a release.
The bonds have a 0% coupon and 37.5% initial exchange premium and priced at the rich end of talk for a 0% to 0.5% coupon and 30% to 37.5% premium. The amount was increased from the initial deal base size of €400 million.
The exchange premium was set above the volume weighted average price of the Evonik share on Xetra between launch and pricing.
BofA Merrill Lynch and UBS acted as joint bookrunners of the Regulation S offering.
The bonds are non-callable for three years until July 2, 2017, and then provisionally callable if the underlying shares exceed 130% of the exchange price.
Settlement is expected to take place June 11. The company is applying to list the bonds on the Open Market of the Frankfurt Stock Exchange.
Proceeds will be used by RAG-Stiftung to increase its existing financial assets and implement its investment strategy.
German-based RAG-Stiftung operates as a law firm and is the majority owner of Evonik, a German chemical maker.
| Issuer: | RAG-Stiftung
|
| Issue: | Exchangeable bonds
|
| Exchange entity: | Evonik Industries AG
|
| Amount: | €600 million, upsized from €400 million
|
| Maturity: | Dec. 31, 2018
|
| Bookrunner: | BofA Merrill Lynch and UBS
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Exchange premium: | 37.5%
|
| Exchange price: | €38.91
|
| Calls: | Non-callable until July 2, 2017, then provisionally callable subject to 130% price hurdle
|
| Price talk: | 0%-0.5%, up 30%-37.5%
|
| Pricing date: | June 4
|
| Settlement: | June 11
|
| Stock symbol: | Xetra: EVK
|
| Distribution: | Regulation S
|
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