New York, April 25 - Accor priced 570 million of five-year convertible bonds Thursday at a yield of 3.125% and an initial conversion premium of 24.6%.
The bonds, sold in the Ocιanes structure and with amortization of principal over the final three years, were brought to market via joint bookrunners Deutsche Bank, HSBC CCF and SG Investment Banking.
The convertibles priced at the cheap end of talk which put the yield at 2.625% to 3.125% and the initial conversion premium at 24% to 29%.
Proceeds will be used to refinance debt and for general corporate purposes.
Accor said the structure chosen - with the bonds redeemable by thirds from the third year - will allow it to manage the potential impact of the issue on its net profits.
The securities were not offered in the U.S., Canada or Japan.
| Isssuer: | Accor
|
| Amount: | 570 million
|
| Greenshoe: | 60 million
|
| Maturity: | Jan. 1, 2007
|
| One third of nominal value will be redeemed on Jan. 1, 2005 at 105.81% (58.86), one third on Jan. 1, 2006 at 108.11% (60.14) and remaining third on Jan .1, 2007 at 110.50% (61.47)
|
| Coupon: | 1% payable annually beginning Jan. 1, 2003 (short first coupon)
|
| Price: | Par of 166.89
|
| Yield: | 3.125%
|
| Initial conversion premium: | 24.6%
|
| Conversion price: | 55.63
|
| Conversion ratio: | 3 for period May 3, 2002 to seven business days before Jan. 1, 2005
|
| 2 for period until seven business days before Jan. 1, 2006
|
| 1 for period until seven business days before Jan. 1 2007
|
| Settlement: | May 3, 2002
|
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