By Wendy Van Sickle
Columbus, Ohio, March 5 – Vodafone Group plc placed £3.44 billion of mandatory convertible bonds in two tranches with two- and three-year maturities, according to a news release.
The 2021 tranche has a 1.2% coupon, and the 2022 tranche has a 1.5% coupon.
The initial conversion price will be determined on the basis of the higher of the £1.3136 closing price of ordinary shares on the London Stock Exchange on Monday and the average of the daily volume-weighted average price of shares for three days starting on Wednesday.
BNP Paribas, BofA Merrill Lynch, HSBC, J.P. Morgan and Morgan Stanley 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 physically settled, and the deal is being priced together with physically settled call and put options allowing holders via the put options to hedge their positions.
Proceeds will be used for part of the financing of the acquisition of Liberty Global's assets in Germany, Czech Republic, Hungary and Romania.
Settlement of the Regulation S convertibles will be March 12.
Vodafone plans to apply for the bonds to be admitted to trading on Euronext Dublin's Global Exchange Market or another recognized stock exchange.
Vodafone is a London-based telecommunications company.
| Issuer: | Vodafone Group plc
|
| Securities: | Mandatory convertible bonds
|
| Amount: | £3.44 billion
|
| Bookrunners: | BNP Paribas, BofA Merrill Lynch, HSBC, J.P. Morgan and Morgan Stanley
|
| Initial conversion price: | £1.3136 or VWAP over three days starting March 6, whichever is greater
|
| Pricing date: | March 5
|
| Settlement date: | March 12
|
| Stock symbol: | London: VOD
|
| Stock price: | £1.3136 at close on March 4
|
|
|
| 2021 tranche
|
| Maturity: | March 2021
|
| Coupon: | 1.2%
|
|
|
| 2022 tranche
|
| Maturity | March 2022
|
| Coupon: | 1.5%
|
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