By Stephanie N. Rotondo
Phoenix, July 30 Steinhoff International Holdings Ltd. priced a 1,116,000,000 offering of 1.25% seven-year senior unsecured guaranteed convertible bonds on Thursday at par to yield 1.25% with an initial conversion premium of 35%, according to a news release published Thursday.
The bonds priced at the cheap end of talk, which was for a 0.5% to 1.25% yield and a 35% to 40% initial conversion premium.
The convertibles were issued by subsidiary Steinhoff Finance Holding GmbH and are guaranteed by the parent company.
Citigroup Global Markets Ltd., HSBC, JPMorgan and Natixis are the joint bookrunning managers. JPMorgan is also acting as the settlement agent, and Citis London branch will be the principal paying, transfer and conversion agent.
The notes are convertible into about 150 million common shares at an initial conversion price of ZAR 103.4674 per share. That is based on a fixed exchange rate of 1=ZAR 13.9029.
Interest will be payable on a semiannual basis.
The notes become redeemable at par plus accrued interest on or after Sept. 1, 2019.
The company will list the bonds on the Frankfurt Stock Exchange.
Proceeds will be used to facilitate future shares repurchases to manage and counter dilution and for general corporate purposes.
Steinhoff is a South African-based international furniture and household goods retail chain operating in Europe, Africa and Australia.
| Issuer: | Steinhoff Finance Holding GmbH
|
| Guarantor: | Steinhoff International Holdings Ltd.
|
| Securities: | Senior unsecured guaranteed convertible bonds
|
| Amount: | 1,116,000,000
|
| Maturity: | Aug. 11, 2022
|
| Bookrunners: | Citigroup Global Markets Ltd., HSBC, JPMorgan, Natixis
|
| Coupon: | 1.25%
|
| Price: | Par
|
| Yield: | 1.25%
|
| Talk: | 0.5% to 1.25%, up 35% to 40%
|
| Conversion premium: | 35%
|
| Conversion price: | ZAR 103.4674 per share, based on a fixed exchange rate of 1=ZAR 13.9029
|
| Call options: | On or after Sept. 1, 2019 at par plus accrued interest
|
| Pricing date: | July 30
|
| Settlement date: | Aug. 11
|
| Expected listing: | Frankfurt Stock Exchange
|
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