By Ronda Fears
Nashville, Feb. 12 - Deutsche Bank Luxembourg sold $1.06 billion in proceeds of 9.3-year exchangeable notes that convert into USA Interactive shares. Total face value is $805 million.
The floating-rate notes will pay a coupon of Libor plus 20 basis points.
Tranche A was sold at 134.5 with a 52.59% initial conversion premium. Tranche B sold at 125.2 with a 67.86% initial conversion premium. Both are par redemption bonds.
Deutsche Bank Luxembourg will use about $240 million of to purchase 28 million warrants for USA Interactive stock from Vivendi Universal. According to Vivendi, 21 million have a $27.50 per share exercise price and 7 million a $32.50 per share exercise price - hence the conversion prices for the notes.
Remaining proceeds will be used for general corporate purposes, Deutsche said.
Terms of the deal are:
Tranche A
| Issuer: | Deutsche Bank Luxembourg
|
| Amount: | $777 million (proceeds)
|
| Lead manager: | Deutsche Bank Securities
|
| Maturity date: | May 11, 2012
|
| Coupon: | Floating at Libor plus 20 bps
|
| Issue price: | 134.5
|
| Redemption price: | Par
|
| Conversion premium: | 52.59%
|
| Conversion price: | $27.50
|
| Conversion ratio: | 36.3636
|
| Settlement date: | Feb. 14
|
|
|
| Tranche B
|
| Issuer: | Deutsche Bank Luxembourg
|
| Amount: | $285 million (proceeds)
|
| Lead manager: | Deutsche Bank Securities
|
| Maturity date: | May 11, 2012
|
| Coupon: | Floating at Libor plus 20 bps
|
| Issue price: | 125.2
|
| Redemption price: | Par
|
| Conversion premium: | 67.86%
|
| Conversion price: | $32.50
|
| Conversion ratio: | 30.7692
|
| Settlement date: | Feb. 14
|
|
|
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