Vodafone sets conversion price for £600 million 0% five-year bonds

By Susanna Moon

Chicago, Dec. 4 – Vodafone Group plc said it set the initial conversion price at £2.897 for its £600 million of five-year equity-linked bonds.

The conversion price represents a premium of 30% above the company’s stock price (London: VOD) of £2.2285, according to a press release.

The initial conversion ratio is 34,518.46738 shares per £100,000 principal amount of the bonds.

Vodafone priced £600 million of the five-year equity-linked bonds at par on Nov. 19 with a 0% coupon and a 30% initial conversion premium.

As previously reported, pricing of the Regulation S convertible came through the rich end of talk for the coupon, which was 0.4% to 1.2%, and at the talked 30% premium price point.

The share reference price was based on the volume-weighted average price of ordinary shares over 10 trading days beginning Friday until Dec. 3.

The deal was 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. Determination of the initial conversion price of the

Proceeds will be used 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 and HSBC Bank plc are joint bookrunners of the offering.

Vodafone is a London-based telecommunications company.

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