By Rebecca Melvin
New York, Feb. 19 – Vodafone Group plc placed £2.88 billion of mandatory convertible bonds in two tranches with 18-month and three-year maturities, according to a news release.
The bonds’ coupons priced at the rich end of talk. The 2017 tranche has a 1.5% coupon, compared to the 1.2% to 1.5% coupon range that was initially talked, and the 2019 tranche has a 2% coupon, compared to the 1.7% to 2% coupon range that was talked.
The initial conversion price will be determined on the basis of the higher of the £2.1730 closing price of ordinary shares on the London Stock Exchange on Feb. 17 and the average of the daily volume-weighted average price of shares for three days starting on Feb. 19.
J.P. Morgan Securities plc and Morgan Stanley & Co. International plc were joint bookrunners of the offering, and they have subscribed for and have been allocated 45% of the nominal amount of the bonds to be issued.
The mandatories will be cash settled, and the deal is being priced together with cash-settled call and put options allowing holders via the put options to hedge their positions.
Proceeds will be used for general corporate purposes and for the company’s purchase of the call options.
Settlement of the Regulation S convertibles will be Feb. 25.
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.
Vodafone is a London-based telecommunications company.
| Issuer: | Vodafone Group plc
|
| Securities: | Mandatory convertible bonds
|
| Amount: | £2.88 billion
|
| Bookrunners: | J.P. Morgan Securities plc and Morgan Stanley & Co. International plc
|
| Price: | Par
|
| Initial conversion price: | £2.1730 or VWAP over three days, whichever is greater
|
| Option overlay: | Yes
|
| Pricing date: | Feb. 23
|
| Settlement date: | Feb. 25
|
| Stock symbol: | London: VOD
|
| Stock price: | £2.1730 at close on Feb. 17
|
|
|
| 2017 tranche
|
| Maturity: | 18 months
|
| Coupon: | 1.5%
|
| Price talk: | 1.2%-1.5%
|
|
|
| 2019 tranche
|
| Maturity | Three years
|
| Coupon: | 2%
|
| Price talk: | 1.7%-2%
|
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