Telenor offers up to $1 billion bonds exchangeable for VimpelCom ADS at 0.375%-0.875%, up 30%-35%

By Rebecca Melvin

New York, Sept. 15 – Telenor East Holding II AS, a subsidiary of Telenor ASA, has launched an offering for up to $1 billion of three-year bonds that are exchangeable into VimpelCom Ltd. American Depositary Shares, according to a company release.

The Regulation S bonds were expected to be issued at par and priced on Thursday at a coupon of between 0.375% to 0.875% and an initial exchange premium over the reference ADS price of 30% to 35%.

Telenor is also pricing a concurrent sale of the ADS it owns in VimpelCom.

Morgan Stanley, JPMorgan, Citigroup Global Markets and Credit Suisse area acting as joint bookrunners of the bond offering.

The bonds are non-callable. Upon redemption, Telenor may deliver a combination of cash and shares.

Settlement is expected to take place on Sept. 21, and an application is being made to list the bonds on the Frankfurt stock exchange open market.

Telenor is a Norwegian multinational telecommunications company based near Oslo.

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