Vodafone Group plans to sell around £500 million equity-linked bonds to yield 0.4%-1.2%, up 30%

By Rebecca Melvin

New York, Nov. 19 – Vodafone Group plc plans to price around £500 million of equity-linked bonds that are being talked at a 0.4% to 1.2% coupon and a 30% initial conversion premium above the share reference price, or volume-weighted average price of ordinary shares over 10 trading days beginning Friday, according to a company news release.

Pricing of the Regulation S convertibles, which will be issued at par, will be announced Dec. 3.

The deal is being priced together with the purchase of cash-settled call options on Vodafone’s ordinary shares from Morgan Stanley & Co. International plc or its affiliates. The bonds will be cash settled.

Proceeds are earmarked for general corporate purposes and for the purchase of the call options.

Vodafone plans to apply for the bonds to be admitted to trading on the Irish Stock Exchange's EEA Regulated Market or another recognized stock exchange.

Morgan Stanley & Co. International plc and HSBC Bank plc are joint bookrunners of the offering.

Vodafone is a London-based telecommunications company.

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