Swiss Prime Site launches CHF 250 million seven-year convertible bonds to yield 0%-0.4%, up 25%-30%

By Rebecca Melvin

New York, June 7 – Swiss Prime Site AG plans to price about CHF 250 million of seven-year convertible bonds late Tuesday at par to yield 0% to 0.4% with an initial conversion premium of 25% to 30% over the volume-weighted average price of its shares on the SIX Swiss Exchange between launch and pricing, according to a news release.

The Regulation S offering consists of a public offering in Switzerland and private placements in other jurisdictions. Credit Suisse and JPMorgan are joint bookrunners of the deal.

The bonds are non-callable for five years and then provisionally callable at par plus accrued interest if the closing price of the shares is 140% of the conversion price on at least 20 out of 30 consecutive trading days. They are also callable if less than 15% principal amount of the bonds are outstanding.

Proceeds will be used for general corporate purposes and refinancing of outstanding and short-term financial debt.

Application for provisional admission to trading will be made on the SIX Swiss Exchange starting June 14.

Olten, Switzerland-based Swiss Prime Site is a real estate investment company.

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