By Rebecca Melvin
New York, Nov. 1 - Salzgitter Finance BV, a subsidiary of Salzgitter AG, priced €275 million seven-year bonds exchangeable into shares of Aurubis AG at par to yield 2% with an initial conversion premium of 25%, according to a news release.
The Regulation S offering, which was oversubscribed several times, has a €25 million greenshoe.
The deal priced at the high end of the talked deal base size of €250 million to €275 million; near the rich end of coupon talk, which was 1.75% to 2.5%; and at the talked price point for the premium.
Bank of America Merrill Lynch, Commerzbank and Deutsche Bank were joint bookrunners and lead managers.
Proceeds will be used for general corporate purposes.
The exchangeables are non-callable until Nov. 28, 2013 and then provisionally callable subject to a 130% price hurdle of the Aurubis share price.
Holders can put the bonds Nov. 8, 2015.
The exchange price has been set at €46.9019, compared to the €37.5215 reference price.
Settlement will take place by Nov. 8. Salzgitter AG intends to list the bonds on the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange.
The maximum number of underlying Aurubis shares assuming exercise of the greenshoe will initially be about 6.4 million shares, representing 16% of the current share capital of Aurubis.
Salzgitter is an integrated steel producer based in Salzgitter, Germany.
Aurubis is a German company engaged in the production and recycling of copper and precious metals.
| Issuer: | Salzgitter Finance BV
|
| Guarantor: | Salzgitter AG
|
| Exchangeable entity: | Aurubis AG
|
| Issue: | Exchangeable unsecured bonds
|
| Amount: | €275 million
|
| Greenshoe: | €25 million
|
| Maturity: | Nov. 8, 2017
|
| Bookrunners: | Bank of America Merrill Lynch, Commerzbank, Deutsche Bank
|
| Coupon: | 2%
|
| Price: | Par, €50,000
|
| Yield: | 2%
|
| Conversion premium: | 25%
|
| Conversion price: | €46.9019
|
| Calls: | Non-callable until Nov. 28, 2013, then provisionally callable subject to a 130% price hurdle
|
| Put: | Nov. 8, 2015
|
| Price talk: | 1.75%-2.5%, up 25%
|
| Pricing date: | Oct. 28
|
| Settlement date: | Nov. 8
|
| Distribution: | Regulation S
|
| Stock symbol: | Frankfurt: SZG
|
| Stock reference price: | €37.5215
|
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