By Rebecca Melvin
New York, Sept. 15 – Telenor East Holding II AS, a subsidiary of Telenor ASA, priced $1 billion of three-year 0.25% bonds that are exchangeable into VimpelCom Ltd. American Depositary Shares, according to a company release.
The initial conversion price of the Regulation S bonds was set at a 40% premium to the price of the ADS. Those terms were beyond the rich end of price talk that had been set at a 0.375% to 0.875% coupon and a 30% to 35% initial exchange premium over the reference ADS price.
Telenor also priced a concurrent sale of 142,500,000 ADS it owned in VimpelCom for proceeds of $486.28 million.
Morgan Stanley, JPMorgan, Citigroup Global Markets and Credit Suisse acted as joint bookrunners of the bond offering.
The bonds are non-callable. Upon redemption, Telenor may deliver a combination of cash and shares.
Settlement is expected to take place on Sept. 21 and an application is being made to list the bonds on the Frankfurt stock exchange open market.
Telenor is a Norwegian multinational telecommunications company based near Oslo.
| Issuer: | Telenor East Holding II AS
|
| Guarantor: | Telenor ASA
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| Issue: | Exchangeable bonds
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| Exchange entity: | VimpelCom Ltd.
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| Amount: | $1 billion
|
| Maturity: | 2019
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| Concurrent offering: | $486.28 million of American Depositary Shares at $3.50 per share
|
| Bookrunners: | Morgan Stanley, JPMorgan, Citigroup Global Markets and Credit Suisse
|
| Coupon: | 0.25%
|
| Price: | Par
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| Yield: | 0.25%
|
| Conversion premium: | 40%
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| Conversion price: | About $4.90
|
| Calls: | None
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| Puts: | No
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| Price talk: | 0.375%-0.875%, up 30%-35%
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| Pricing date: | Sept. 15
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| Settlement date: | Sept. 21
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| Stock symbol: | Nasdaq: ADS: VIP
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| Stock reference price: | $3.50
|
| Stock price: | $3.63 at close on Sept. 15
|
| Distribution: | Regulation S
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