New York, Nov. 3 – Valeo SA priced a $125 million add on to its 0% five-year convertible bonds at a price of 107 to yield negative 1.45%, according to a news release.
The 107 level is an initial price. The final level will be set using a reference period of five consecutive trading days after the placement, that is, from Nov. 4 to Nov. 10, in order to reflect the performance of Valeo’s stock and moves in the euro to dollar exchange rate.
Settlement is scheduled for Nov. 16.
Apart from the issue price, the new convertibles have the same terms as the $450 million issued on June 16.
The add on came at the rich end of talk for a price of 106 to 107.
Credit Agricole CIB and Societe Generale are the joint bookrunners for the sale, which was conducted as a private placement both within and outside France but not in the United States.
The convertibles will be cash settled and no new shares will be issued.
Valeo said it will purchase additional cash-settled call options on its own shares to hedge the exposure created by the new bonds.
In addition, the dollar-denominated debt will be converted into euros.
Proceeds from the convertibles will be used for general corporate purposes.
Valeo is a Paris-based automotive supplier.
| Issuer: | Valeo SA
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| Issue: | Convertible bonds
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| Amount: | $125 million (outstanding amount now $575 million)
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| Maturity: | June 16, 2021
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| Bookrunners: | Credit Agricole CIB, Societe Generale
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| Coupon: | 0%
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| Price: | 107
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| Yield: | -1.45%
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| Conversion price: | €64.6137
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| Net share settlement: | No, cash settled
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| Price talk: | 106-107
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| Pricing date: | Nov. 3
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| Settlement date: | Nov. 16
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| Distribution: | Regulation S
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| Reference price: | To be determined by VWAP over 10 days beginning June 10
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| Stock symbol: | Paris: EN
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| Stock reference price: | €57.24 at close on Nov. 3 (€45.54 at close on June 9)
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| Market capitalization: | €13.49 billion
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