By Rebecca Melvin
New York, Aug. 13 - Norway's Renewable Energy Corp. ASA priced $110 million of five-year convertible bonds at par to yield 6.5% with an initial conversion premium of 22% over the closing price of shares on the Oslo Stock Exchange Monday.
The Regulation S deal, which was managed by Arctic Securities ASA, has an initial conversion price of NOK 3.60.
Proceeds of $74 million of the new issue will be used to buy back existing convertible bonds maturing in 2014. After the repurchases, which also included some repurchases in cash, there is €81.2 million of the older issue outstanding.
The new bond issue is conditional upon approval by an extraordinary general meeting set for Sept. 6. Settlement of the new bond issue is set for Sept. 13. Separately, the company plans partial repurchases of the company's straight bonds maturing in 2014, 2016 and 2018.
On July 18, the loss making company announced that it is splitting itself into two companies with the solar panel operations splitting off into a separate, listed company, and the silicon operation remaining with the parent company.
Renewable Energy is a Sandvika, Norway-based company active in the solar energy sector.
| Issuer: | Renewable Energy Corp. ASA
|
| Issue: | Convertible bonds
|
| Amount: | $110 million
|
| Maturity: | Sept. 13, 2018
|
| Bookrunner: | Arctic Securities ASA
|
| Coupon: | 6.5%
|
| Price: | Par
|
| Yield: | 6.5%
|
| Conversion premium: | 22%
|
| Conversion price: | NOK 3.60
|
| Pricing date: | Aug. 12
|
| Settlement date: | Sept. 13
|
| Stock symbol: | Oslo: REC
|
| Stock reference price: | Oslo: NOK 2.94, at close Aug. 12
|
| Distribution: | Regulation S
|
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