By Rebecca Melvin
New York, Sept. 30 - UCB SA priced an upsized €450 million of six-year convertible bonds Wednesday at par to yield 4.5% with an initial conversion premium of 35%, according to a news release.
The Regulation S offering, for which demand was strong, was initially going to be €350 million in size. There is an over-allotment option of €50 million, which if granted would raise the issue size to €500 million.
The offering priced at the rich end of talk, which was 4.5% to 5.25% for the coupon and 30% to 35% for the initial conversion premium.
Barclays Capital, BNP Paribas Fortis and KBC Financial Products were joint bookrunners for the bonds, which will be non-callable for four years and then provisionally callable at a price hurdle of 130%. There are no puts.
Net proceeds will be used for general corporate purposes and for part of a funding diversification policy being implemented by the board.
The bonds, which are still subject to shareholder approval, are expected to settle on Oct. 22.
Financiere de Tubize SA holds 36.2% of the company's ordinary shares and has expressed its support for the transaction.
Application will be made to the Luxembourg Stock Exchange to list the bonds on the official list of the Luxembourg Stock Exchange and to admit the bonds to trading on the Luxembourg Stock Exchange's Euro MTF Market.
UCB is a Brussels, Belgium-based biopharmaceutical company focused on the fields of central nervous system and immunology disorders.
| Issuer: | UCB SA
|
| Issue: | Convertible senior unsecured bonds
|
| Amount: | €450 million, upsized from €350 million
|
| Greenshoe: | €50 million
|
| Maturity: | Oct. 22, 2015
|
| Bookrunners: | Barclays Capital, BNP Paribas Fortis, KBC Financial Products
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Conversion premium: | 35%
|
| Conversion price: | €38.746
|
| Calls: | Non-callable for four years, and then provisionally callable at a price hurdle of 130%
|
| Put: | No puts
|
| Price talk: | 4.5%-5.25%, up 30%-35%
|
| Pricing date: | Sept. 30
|
| Settlement date: | Oct. 22
|
| Distribution: | Regulation S
|
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