By Rebecca Melvin
New York, May 21 - South Africa's Steinhoff International Holdings Ltd. priced ZAR 1.5 billion of seven-year convertible bonds on Wednesday at par with a coupon of 9.625% to yield 11.522% for an initial conversion premium of 32.5%, according to a syndicate source.
Pricing came at the midpoint of talk, which was for a coupon of 9.375% to 9.875% and an initial conversion premium of 30% to 35%.
Barclays Capital was the bookrunner of the bonds, which have a ZAR 225 million over-allotment option.
The bonds are non-callable for three years and provisionally callable thereafter subject to a 130% hurdle. There are no puts, except a change-of-control put.
The bonds, which are expected to be listed on the Singapore Stock Exchange, will be convertible only into shares.
Steinhoff, a diversified industrial company, plans to use proceeds for general corporate purposes, including appropriate earnings-enhancing refinancing and balance sheet optimization.
| Issuer: | Steinhoff International Holdings Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | ZAR 1.5 billion
|
| Greenshoe: | ZAR 225 million
|
| Maturity: | July 20, 2015
|
| Bookrunner: | Barclays Capital
|
| Coupon: | 9.625%
|
| Price: | Par
|
| Yield: | 11.522%
|
| Conversion premium: | 32.5%
|
| Conversion price: | ZAR 18.696
|
| Call option: | Non-callable until 2011, provisionally callable thereafter at 130% hurdle
|
| Put option: | None
|
| Change-of-control put: | Yes
|
| Fundamental change protection: | Yes
|
| Pricing date: | May 21
|
| Settlement date: | June 9
|
| Price talk: | 9.375% to 9.875%, up 30% to 35%
|
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