Valeo sets initial conversion price for 0% five-year bonds at €64.6137

By Susanna Moon

Chicago, June 23 – Valeo SA said it has calculated the initial conversion price of its $450 million of 0% five-year convertible bonds at €64.6137.

The initial conversion price represents a premium of 45% above the reference share price of €44.5612, according to a company notice.

As reported, Valeo priced the 0% five-year convertible bonds at par of $200,000 per bond on June 9, 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.

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 occurred on June 16.

Hedge counterparties were 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.

The company applied to list the bonds on the Euronext Paris and Deutsche Borse.

Valeo is a Paris-based automotive supplier.

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