By Rebecca Melvin
New York, March 24 Aabar Investments PJS priced 2 billion of bonds in two equal tranches, exchangeable for shares of Italian bank UniCredit SpA, according to a term sheet.
The deal size included a 500 million upsize option that was exercised upon issuance.
The 1 billion of five-year bonds, or the 2020 bonds, have a 0.5% coupon and a 40% initial conversion premium. That represents the cheap end of talked terms for a 0% to 0.5% coupon and 40% to 45% premium over the volume weighted average price of the banks shares between launch and pricing.
The 1 billion seven-year bonds, or the 2022 bonds, have a 1% coupon and 40% premium, which represents the cheap end of talk for a 0.5% to 1% coupon and 40% to 45% premium.
The 2020 bonds are non-callable until April 17, 2018 and then provisionally callable if shares exceed 130% of the conversion price. The 2022 bonds are non-callable until April 17, 2020 and then provisionally callable if shares exceed 130% of the conversion price.
There are no puts except a takeover put. The bonds also have dividend protection and may be settled in cash.
Aabar Investments will use the proceeds to buy back its 4% senior unsecured bonds due 2016, exchangeable into shares of Daimler AG.
Joint bookrunners were Deutsche Bank AG London branch, Barclays Bank plc, BofA Merrill Lynch, BNP Paribas and Societe Generale CIB.
The company is applying to list the bonds for trading on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange
Aabar is an Abu Dhabi-based private investment company focused on infrastructure, aviation, real estate, commodities and financial services, among other things. Its parent is IPIC, which is fully owned by the Government of Abu Dhabi.
| Issuer: | Aabar Investments PJS
|
| Issue: | Exchangeable bonds
|
| Exchange entity: | UniCredit SpA
|
| Amount: | 2 billion, including upsize option
|
| Bookrunners: | Deutsche Bank AG London branch, Barclays Bank plc, BofA Merrill Lynch, BNP Paribas, Societe Generale CIB
|
| Price: | Par of 100,000
|
| Initial conversion premium: | 40%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Settlement payment: | May be cash settled
|
| Pricing date: | March 24
|
| Settlement date: | March 31
|
| Distribution: | Regulation S
|
|
|
| 2020 bonds
|
| Amount: | 1 billion
|
| Maturity: | March 27, 2020
|
| Coupon: | 0.5%
|
| Calls: | Non-callable until April 17, 2018, then provisionally callable at 130% price hurdle
|
| Price talk: | 0%-0.5%, up 40%-45%
|
|
|
| 2022 bonds
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| Amount: | 1 billion
|
| Maturity: | March 27, 2022
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| Coupon: | 1%
|
| Calls: | Non-callable until April 17, 2020, then provisionally callable at 130% price hurdle
|
| Price talk: | 0.5%-1%, up 40%-45%
|
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