Wendel sells €251 million bonds exchangeable for Cap Gemini at 2.0% yield, up 45%

By Ronda Fears

Nashville, May 22 - Wendel Investissement sold an upsized €251.1 million of six-year exchangeable bonds, which convert into Cap Gemini SA shares, at par to yield 2.0% with a 45% initial conversion premium. It was boosted from €240 million.

The quick-sale issue, via joint lead managers Societe Generale and BNP Paribas, sold at the aggressive end of guidance that put the coupon between 2.0% and 2.5% and the premium at 40% to 45%.

Deutsche Bank Securities Inc. put the issue 4.645% cheap at the midpoint of guidance, using a credit spread of 200 basis points over Libor and a 40% stock volatility.

The issue will be convertible at €39.86, with a conversion ratio of 1.0 share per bond.

Shares of the IT consultant Cap Gemini closed in Paris up €1.16, or 4.3%, to €28.16.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.