By Abigail W. Adams
Portland, Me., July 28 – STMicroelectronics NV priced $1.5 billion 0% convertible bonds in five- and seven-year tranches on Tuesday, according to a company news release.
The deal included a $750 million tranche of five-year notes, which priced at the midpoint of talk with an offer price of 105.8 to yield negative 1.12% and an initial conversion premium of 47.5%.
Price talk for the five-year tranche was for an offer price of 104.5 to 107.1 to yield negative 1.36% to negative 0.88% and an initial conversion premium of 45% to 50%, according to a market source.
The deal also included a $750 million tranche of seven-year notes, which priced at the midpoint of talk with an offer price of 104.5 to yield negative 0.63% and an initial conversion premium of 52.5%.
Price talk for the seven-year tranche was for an offer price of 102.7 to 106.3 to yield negative 0.87% to 0.38% and an initial conversion premium of 50% to 55%.
BNP Paribas Securities Corp., J.P. Morgan Securities LLC and UniCredit CIB were joint global coordinators and bookrunners for the Regulation S offering.
Citigroup Global Markets Ltd., IMI – Intesa Sanpaolo, Morgan Stanley & Co. International plc and Natixis were also joint bookrunners.
The five-year tranche is non-callable for three years and then subject to a 130% hurdle.
The seven-year tranche is non-callable for four years and then subject to a 130% hurdle.
The bonds are putable upon a fundamental change. There is dividend protection.
Proceeds will be used to redeem the outstanding $750 million of the company’s 0% convertible bonds due 2022 and for general corporate purposes.
STMicroelectronics is a Geneva, Switzerland-based electronics and semiconductor company.
| Issuer: | STMicroelectronics NV
|
| Securities: | Convertible bonds
|
| Amount: | $1.5 billion
|
| Bookrunners: | BNP Paribas Securities Corp., J.P. Morgan Securities LLC, UniCredit CIB, Citigroup Global Markets Ltd., IMI – Intesa Sanpaolo, Morgan Stanley & Co. International plc and Natixis
|
| Distribution: | Regulation S
|
| Pricing date: | July 28
|
| Settlement date: | Aug. 4
|
| Market capitalization: | FTSE MIB: STM
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 4, 2025
|
| Coupon: | 0%
|
| Price: | 105.8
|
| Yield: | Negative 1.12%
|
| Conversion premium: | 47.5%
|
| Call options: | Non-callable for three years then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Talk: | Offer price of 104.5 to 107.1 to yield negative 1.36% to negative 0.88% and initial conversion premium of 45% to 50%
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 4, 2027
|
| Coupon: | 0%
|
| Price: | 104.5
|
| Yield: | Negative 0.63%
|
| Conversion premium: | 52.5%
|
| Call options: | Non-callable for four years then subject to 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Talk: | Offer price of 102.7 to 106.3 to yield negative 0.87% to 0.38% and initial conversion premium of 50% to 55%
|
|
|
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