New York, Sept. 17 - Versatel Telecom International NV priced €100 million of convertible bonds due 2011 to yield 3.875% with a 28% initial conversion premium.
The deal priced at a yield in the middle of talk of 3.75% to 4% and at the rich end of premium talk of 23% to 28%.
JPMorgan was bookrunner for the sale, which was offered only to institutional investors.
Versatel, an Amsterdam-based telecommunications company, will use proceeds for general corporate purposes including acquisitions in its core markets.
The convertible sale will "increase its financial flexibility at an attractive cost and reduce some of the capital markets risk from its stated strategy of financing acquisitions through new share issues," Versatel said.
The bonds convert into 49.2 million shares, 9.8% of the current share capital.
| Issuer: | Versatel Telecom International NV
|
| Issue: | Unsubordinated convertible bonds
|
| Amount: | €100 million
|
| Greenshoe: | €25 million
|
| Maturity: | 2011
|
| Coupon: | 3.875%
|
| Price: | Par
|
| Yield: | 3.875%
|
| Initial conversion premium: | 28%
|
| Conversion price: | €2.033
|
| Talk: | Yield: 3.75% to 4%
|
| Premium: 23% to 28%
|
| Bookrunner: | JPMorgan
|
| Pricing date: | Sept. 17
|
| Settlement date: | Oct. 28
|
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