New York, Nov. 10 Valeo SA priced a $125 million add-on to its 0% five-year convertible bonds at a price of $214,440.74 per bond and an initial conversion premium of 28%, according to a news release.
The share reference price for the add-on is 50.5537. The reference foreign exchange rate was fixed at 1:US$1.0880.
The final tap price was set using a reference period from Nov. 4 to Nov. 10, reflecting the performance of Valeos stock and moves in the euro to dollar exchange rate.
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.
Settlement is scheduled for Nov. 16.
Valeo is a Paris-based automotive supplier.
| Issuer: | Valeo SA
|
| Issue: | Convertible bonds
|
| Amount: | $125 million add-on (outstanding amount now $575 million)
|
| Maturity: | June 16, 2021
|
| Bookrunners: | Credit Agricole CIB, Societe Generale
|
| Coupon: | 0%
|
| Price: | 214,440.74 per bond, or 107% of par
|
| Yield: | Minus 1.45%
|
| Conversion premium: | 28%
|
| Conversion price: | 64.6137
|
| Net share settlement: | No, cash settled
|
| Price talk: | 106-107
|
| Pricing date: | Nov. 3
|
| Settlement date: | Nov. 16
|
| Distribution: | Regulation S
|
| Stock symbol: | Paris: EN
|
| Stock reference price: | 57.24 at close on Nov. 3; 50.5537 for add-on
|
| Market capitalization: | 13.49 billion
|
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