New Issue: Sol Melia sells €150 million exchangeable to yield 4.3%, up 80%

By Ronda Fears

Nashville, Oct. 22 - Sol Melia Europe BV sold €150 million of five-year exchangeable bonds, which convert into Sol Melia SA shares, at par to yield 4.3% with an 80% initial conversion premium, via bookrunner Barclays Capital Markets.

The Regulation S deal sold in the middle of price talk that put the coupon between 4.05% and 4.55%. The conversion premium had been set at 80%.

The Spanish hotel and resort chain said proceeds would be used to refinance debt.

Terms of the deal are:

Issuer:	Sol Melia Europe BV
Reference shares:	Sol Melia SA
Issue:	Exchangeable bonds
Lead manager:	Barclays Capital Markets
Amount:	€150 million
Maturity:	Nov. 14, 2008
Coupon:	4.3%
Price:	Par
Redemption price:	Par
Yield:	4.43%
Conversion premium:	80%
Conversion price:	€11.898
Conversion ratio:	840.4774
Call:	Non-callable for 4 years, then with 130% hurdle
Price talk:	4.05-4.55%, up 80%
Settlement:	Nov. 14
Distribution:	Regulation S

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