Valeo launches $450 million of 0% five-year convertible bonds, up 45%

By Rebeca Melvin

New York, June 9 – Valeo SA launched a $450 million offering of 0% five-year convertibles expected to be priced Thursday at 100% to 104% of par, or minus 0.78% to 0.0% yield, and with an initial conversion premium of 45% over a reference price based on the volume-weighted average price of shares over 10 trading days beginning June 10, according to a news release.

The Regulation S bonds have a $200,000 par and are being sold in a private placement in France and in other jurisdictions via joint lead managers and joint bookrunners Credit Agricole CIB, Citigroup Global Markets Ltd. and J.P. Morgan Securities plc.

Settlement and delivery of the non-dilutive, cash-settled convertibles is expected June 16, and the reference price determined by the VWAP will be announced June 23.

Hedge counterparties are expected to enter into transactions to hedge their positions under the cash-settled cash options through the sale or purchase of shares of Valeo or other transactions.

Proceeds will be used for general corporate purposes and to finance recently announced acquisitions.

An application is being made to list the bonds on the Euronext Paris and Deutsche Borse.

Valeo is a Paris-based automotive production company.

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