By Rebecca Melvin
New York, Feb. 25 - SAS AB launched and priced SEK 1.6 billion of five-year convertible senior bonds at par on Tuesday to yield 3.625% with an initial conversion premium of 25%, according to a news release.
Pricing of the Regulation S offering came at the cheap end of talk, which was for a 3.125% to 3.625% coupon and a 25% to 30% premium over the volume-weighted average price of the company's shares on the Nasdaq OMX Stockholm between launch and pricing.
The new bonds are non-callable for three years and then provisionally callable subject to a price hurdle of 130%.
Proceeds from the bond issue together with the proceeds from a preference share offer announced Feb. 7 will be used to redeem bonds maturing in 2015.
The issue is being marketed via bookrunner JPMorgan and is expected to settle by March 5. Mannheimer Swartling is acting as legal adviser to SAS in connection with the convertible bond offering.
Application will be made to list the bonds on the Open Market segment of the Frankfurt Stock Exchange.
SAS is an air carrier based in Stockholm.
| Issuer: | SAS AB
|
| Issue: | Convertible senior bonds
|
| Amount: | SEK 1.6 billion
|
| Bookrunner: | JPMorgan
|
| Maturity: | April 2019
|
| Coupon: | 3.625%
|
| Price: | Par
|
| Yield: | 3.625%
|
| Conversion premium: | 25%
|
| Conversion price: | SEK 24.0173
|
| Calls: | Non-callable for three years, then provisionally callable subject to 130% hurdle
|
| Price talk: | 3.125%-3.625%, up 25%-30%
|
| Pricing date: | Feb. 25
|
| Settlement date: | March 5
|
| Stock symbol: | SAS
|
| Stock reference price: | SEK 19.2138
|
| Distribution: | Regulation S
|
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