By Rebecca Melvin
New York, Feb. 11 RAG-Stiftung priced an upsized 500 million of 0% six-year bonds exchangeable into shares of Evonik Industries AG at an issue price of 101% of par and an initial exchange premium of 35%, according to a news release.
The Regulation S bonds priced at the midpoint of talk for the issue price, which was 100% to 102%, and premium, which was 32.5% to 37.5%, and at the rich end of 0% to 0.5% coupon talk.
BofA Merrill Lynch and UBS were acting as joint bookrunners of the deal, which was increased from an initially talked 400 million due to strong investor demand.
The senior bonds are non-callable for four years 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 its investment strategy.
RAG-Stiftung has an existing 600 million of 0% exchangeable bonds due 2018. After investing the proceeds of that issue, RAG-Stiftungs total assets rose to more than 13 billion as of Dec. 31, 2014.
Settlement of the new issue is expected on 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.
Germany-based RAG-Stiftung is a foundation involved in the financing of RAG Corp.s coal mining operations and is majority owner of Evonik, a German chemical maker.
| Issuer: | RAG-Stiftung
|
| Issue: | Exchangeable senior bonds
|
| Exchange entity: | Evonik Industries AG
|
| Amount: | 500 million, upsized from 400 million
|
| Maturity: | Feb. 18, 2021
|
| Bookrunners: | BofA Merrill Lynch, UBS
|
| Coupon: | 0%
|
| Price: | Par, 101%
|
| Exchange premium: | 35%
|
| Exchange price: | 37.98
|
| Calls: | Non-callable until March 11, 2019, then provisionally callable subject to 130% price hurdle
|
| Pricing date: | Feb. 11
|
| Settlement date: | Feb. 18
|
| Distribution: | Regulation S
|
| Stock symbol: | Xetra: EVK
|
| Price talk: | 0%-0.5%, up 32.5%-37.5%
|
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