By Kenneth Lim
Boston, June 1 - The United Kingdom's Vector Hospitality plc priced £525.4 million to £588.7 million of five-year unsubordinated unsecured convertible bonds at the rich end of talk Thursday to yield 2.75% with an initial conversion premium of 32%.
The convertibles were offered at par. The deal was talked at a coupon of 2.75% to 3.25% and an initial conversion premium of 27% to 32%.
Deutsche Bank, Goldman Sachs, Royal Bank of Scotland and UBS Investment Bank are the bookrunners of the Regulation S offering.
The deal is concurrently offered with Vector's initial public offering, and the final size of the deal will be decided when the IPO prices on June 11. The convertible deal is initially convertible into 40 million shares of Vector common stock, of which 5 million shares were from an over-allotment option that was immediately exercised.
The convertibles may be put in the third year.
Vector, a London-based specialist hospitality real estate investment trust, said the proceeds of the convertible deal and its IPO will be used to fund the acquisition of its initial portfolio.
| Issuer: | Vector Hospitality plc
|
| Issue: | Convertible unsubordinated unsecured bonds
|
| Bookrunners: | Deutsche Bank, Goldman Sachs, Royal Bank of Scotland and UBS Investment Bank
|
| Amount: | £525.4 million to £588.7 million
|
| Maturity: | 2012
|
| Coupon: | 2.75%
|
| Price: | Par
|
| Yield: | 2.75%
|
| Conversion premium: | 32%
|
| Conversion price: | To be determined based on IPO price
|
| Puts: | 2010
|
| Price talk: | 2.75%-3.25%, up 27%-32%
|
| Pricing date: | May 31
|
| Settlement date: | June 11
|
| Distribution: | Regulation S
|
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