By Rebecca Melvin
New York, March 11 - Steinhoff Finance Holdings GmbH, a subsidiary of Steinhoff International Holdings Ltd., priced €450 million of 4.5% convertible bonds due March 31, 2018 at par to yield 5.75% with an initial conversion premium of 32%, according to a news release.
The initial conversion price has been set at ZAR 31.78 per ordinary share.
The bonds will be redeemed at 110.68% of their principal amount upon maturity.
The Regulation S bonds came at the cheap end of price talk for the premium, which was 32% to 37%, and at the talked price point for the coupon. The yield to maturity per year is 5.75%, which was at the cheap end of 5% to 5.75% talk.
There is a greenshoe for a further €25 million, which was downsized from €50 million.
Citigroup Global Markets Ltd. and BNP Paribas SA were the joint bookrunners of the offering, with Commerzbank AG and Standard Bank acting as the co-managers.
The bonds will be non-callable for until Dec. 6, 2014 and then provisionally callable at a price hurdle of 140%.
Proceeds will be used for general corporate purposes of the group, which was enlarged after the acquisition of Conforama Holding SA earlier this year, to extend its debt maturity profile and to provide financial flexibility for strategic initiatives.
Application will be made to include the bonds for trading on the Open Market of the Frankfurt Stock Exchange.
Steinhoff is a South Africa-based manufacturer and distributor of household goods.
| Issuer: | Steinhoff Finance Holdings GmbH
|
| Guarantor: | Steinhoff International Holdings Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | €450 million
|
| Greenshoe: | €25 million, downsized from €50 million
|
| Maturity: | March 31, 2018
|
| Bookrunners: | Citigroup Capital Markets Ltd., BNP Paribas SA
|
| Co-managers: | Commerzbank AG, Standard Bank
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Redemption price: | 110.68%
|
| Yield: | 5.75%
|
| Conversion premium: | 35%
|
| Calls: | Non-callable until April 14, 2016, then provisionally callable at a price hurdle of 140%
|
| Price talk: | 4% coupon; 5%-5.75% yield; up 32%-37%
|
| Pricing date: | March 10
|
| Settlement date: | March 17
|
| Distribution: | Regulation S
|
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