Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers R > Headlines for RAG-Stiftung > News item |
RAG-Stiftung plans €400 million six-year bonds exchangeable into shares of Evonik Industries
By Rebecca Melvin
New York, Feb. 11 – RAG-Stiftung plans to price €400 million of six-year bonds exchangeable into shares of Evonik Industries AG, according to a news release.
The Regulation S bonds are to be issued at 100% to 102% of their principal amount and were talked with a 0% to 0.5% coupon and a 32.5% to 37.5% initial exchange premium over the volume weighted average price of Evonik shares between launch and pricing.
BofA Merrill Lynch and UBS were acting as joint bookrunners of the deal, which may be increased by up to €100 million.
The senior bonds are non-callable until March 11, 2019 and then are provisionally callable if shares exceed 130% of the exchange price.
Proceeds will be used to raise financial assets and to execute on the company’s investment strategy.
RAG-Stiftung has an existing €600 million issue of exchangeable bonds due 2018. After investing the proceeds of that issue, RAG-Stiftung’s total assets rose to more than €13 billion as of year-end 2014.
Settlement of the new issue is expected Feb. 18, and the bonds will be redeemed at 100% of par on Feb. 18, 2021.
The company plans to apply to list the bonds on the open market segment of the Frankfurt Stock Exchange.
German-based RAG-Stiftung operates as a law firm and is the majority owner of Evonik, a German chemical maker.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.