By Rebeca Melvin
New York, June 9 – Valeo SA priced $450 million of 0% five-year convertible bonds at par of $200,000 per bond on Thursday, 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.
Pricing of the Regulation S bonds were talked at an issue price of 100% to 104% of par and a yield of minus 0.78% to 0.0%.
The non-dilutive, cash-settled convertibles were 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 is expected June 16, and the reference price, initial conversion price and initial conversion ratio determined by the VWAP will be announced June 23.
Hedge counterparties are expected to enter into transactions to hedge their positions under cash-settled cash options through the sale or purchase of shares of Valeo or other transactions during the reference period and around conversion or redemption of the bonds.
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 supplier.
| Issuer: | Valeo SA
|
| Issue: | Convertible bonds
|
| Amount: | $450 million
|
| Maturity: | June 16, 2021
|
| Bookrunners: | Credit Agricole CIB, Citigroup Global Markets Ltd., J.P. Morgan Securities plc
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: | 45%
|
| Net share settlement: | No, cash settled
|
| Price talk: | 100%-104% of par, yield of minus 0.78%-0.0%, up 45%
|
| Pricing date: | June 9
|
| Settlement date: | June 16
|
| Distribution: | Regulation S
|
| Reference price: | To be determined by VWAP over 10 days beginning June 10
|
| Stock symbol: | Paris: EN
|
| Stock reference price: | €45.54 at close June 9
|
| Market capitalization: | €10.89 billion
|
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