By Abigail W. Adams
Portland, Me., Nov. 17 – Schneider Electric priced €650 million convertible bonds in the Oceane structure due June 2026 (A-) on Tuesday with a coupon of 0%, an offer price of €190.11, or 107.75% of their nominal value of €176.44, to yield negative 1.33%, and an initial conversion premium of 50%, according to a company news release.
Pricing of the offering came at the midpoint of talk for an offering price of 106.25 to 109.25 and at the rich end of talk for an initial conversion premium of 45% to 50%.
The bonds were marketed to qualified institutional investors in accordance with the French monetary code.
The bonds are non-callable until Jan. 15, 2024 and then subject to a 130% hurdle.
The offering is the company’s first sustainability-linked bond. If the company’s sustainability performance score does not reach a certain threshold by Dec. 31, 2025, the company will pay an additional 0.5%, or €0.88, for each bond at either their maturity or early redemption date.
Proceeds will be used for general corporate purposes.
Schneider Electric is a Rueil-Malmaison, France-based energy management and automation specialist.
| Issuer: | Schneider Electric
|
| Securities: | Convertible bonds in Oceane structure
|
| Amount: | €650 million
|
| Maturity: | June 15, 2026
|
| Coupon: | 0%
|
| Price: | €190.11, or 107.75% of their nominal value of €176.44
|
| Yield: | Negative 1.33%
|
| Conversion premium: | 50%
|
| Conversion price: | €176.44
|
| Conversion rate: | 1
|
| Call options: | Non-callable until Jan. 15, 2024 and then subject to a 130% hurdle
|
| Pricing date: | Nov. 17
|
| Settlement date: | Nov. 24
|
| Rating: | S&P: A-
|
| Distribution: | QIBs in France
|
| Talk: | Reoffer price of 106.25 to 109.25 and initial conversion premium of 45% to 50%
|
| Stock symbol: | Paris: SU
|
| Stock price: | €117.90 at market close on Nov. 17
|
| Market capitalization: | €66.857 billion
|
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