Nashville, Nov. 18 - SVB Holdings plc sold £50 million of five-year convertible bonds at par to yield 7% with a 20% initial conversion premium, via lead manager ABN AMRO Rothschild.
The issue is not a rights offering, but SVB said that qualifying shareholders will be given the opportunity to subscribe for the convertible bonds pro rata on the basis of one bond for every 940 existing ordinary shares held at the record date of Nov. 14.
Up to £38.9 million of bonds can be placed with existing shareholders and certain other institutional investors, subject to clawback, the company said.
SVB directors, C.A.C. Chaplin, O.R.P. Corbett, M.K. Fosh and A.M. Nichols, who together hold 0.53% of outstanding shares, have indicated their intent to subscribe for £205,700 of the convertible bonds.
SVB is the holding company of an insurance group that underwrites at Society and Corporation of Lloyd's created and governed by the Lloyd's Acts 1871-1982, through two syndicates. Proceeds will be used to provide additional funds at Lloyd's to support SVB's underwriting business for 2004.
Terms of the deal are:
| Issuer: | SVB Holdings plc
|
| Issue: | Convertible bonds
|
| Lead manager: | ABN AMRO Rothschild
|
| Amount: | £50 million
|
| Maturity: | Dec. 15, 2008
|
| Coupon: | 7.0%
|
| Price: | Par
|
| Redemption price: | Par
|
| Yield: | 7.0%
|
| Conversion premium: | 20%
|
| Conversion price: | 61.22p
|
| Conversion ratio: | 16.3345
|
| Call: | Non-callable
|
| Price talk: | 6.0-7.0%, up 20-25%
|
| Pricing date: | Nov. 18
|
| Settlement date: | Dec. 15
|
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