Valeo launches $125 million add-on to its $450 million of 0% convertible bonds due 2021

By Stephanie N. Rotondo

Seattle, Nov. 3 – Valeo SA plans to price a $125 million add-on to its $450 million of 0% five-year convertible bonds, the company said in a press release on Thursday.

The issue, which matures June 16, 2021, will be priced at 106% to 107% of par.

The convertibles have an initial conversion premium of 45%.

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 and Societe Generale.

Settlement and delivery is expected Nov. 16, and the reference price, initial conversion price and initial conversion ratio determined by the VWAP will be announced Nov. 10.

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.

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

Valeo originally sold $450 million of the bonds on June 9 at par via Credit Agricole, Citigroup Global Markets Ltd. and J.P. Morgan Securities plc. Those notes settled June 16.

Valeo is a Paris-based automotive supplier.

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