By Rebecca Melvin
New York, Sept. 19 - Holdgrove Ltd. priced an upsized $475 million of 1% five-year convertible bonds, which are guaranteed by Russia's OAO Severstal, to yield 2% with an initial conversion premium of 45%, according to a news release.
The offering of senior unsecured convertibles was originally talked at $450 million in size.
Pricing came at the talked point for the coupon and at the rich end of 2% to 2.5% yield talk and 40% to 45% premium.
Citigroup Global Markets Ltd. and Deutsche Bank AG, London branch, acted as joint bookrunning and joint lead managers of the Regulation S offering.
The bonds are non-callable for three years and then provisionally callable if shares are 140% of conversion.
The accreted redemption price is 105.231% of the principal amount.
Proceeds will be used by companies with the Severstal group primarily for refinancing debt and for general corporate purposes.
The bonds will be convertible into Global Depositary Receipts of Severstal listed on the London Stock Exchange, and application is being made to list the bonds there.
Severstal is a steel and mining company based in Cherepovets, Russia.
| Issuer: | Holdgrove Ltd.
|
| Guarantor: | OAO Severstal
|
| Issue: | Senior unsecured convertibles
|
| Amount: | $475 million, upsized from $450 million
|
| Maturity: | Sept. 24, 2017
|
| Bookrunners: | Citigroup Global Markets Ltd., Deutsche Bank AG, London branch
|
| Coupon: | 1%
|
| Price: | Par
|
| Accreted redemption price: | 105.231
|
| Yield: | 2%
|
| Conversion premium: | 45%
|
| Conversion price: | $19.08
|
| Calls: | Non-callable until Oct. 15, 2015, then provisionally callable at a price hurdle of 140%
|
| Puts: | At year three
|
| Price talk: | 1%, to yield 2%-2.5%, up 40%-45%
|
| Stock symbol: | London: SVST
|
| Stock reference price: | US$13.158
|
| Pricing date: | Sept. 19
|
| Settlement date: | Sept. 24
|
| Distribution | Regulation S
|
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