By Kenneth Lim
Boston, May 10 - Switzerland's Addax Petroleum Corp. priced $275 million of five-year convertible senior unsecured bonds at the rich end of talk on Thursday to yield 3.75% with an initial conversion premium of 40%.
The convertible was offered at par. The deal was talked at a coupon of 3.75% to 4.25% and an initial conversion premium of 35% to 40%.
There is an over-allotment option for a further $25 million.
Citigroup and UBS Investment Bank were the bookrunners of the Regulation S offering.
The bonds are convertible into Addax's Toronto-listed common stock.
The convertibles are non-callable for the first three years, after which they may be called subject to a hurdle at 130% of the conversion price. The convertibles may not be put.
There convertibles have dividend and takeover protection.
There is a net-share settlement feature.
Addax, a Geneva-based oil and gas exploration and production company, said it will use the proceeds of the deal for general corporate purposes.
| Issuer: | Addax Petroleum Corp.
|
| Issue: | Convertible senior unsecured bonds
|
| Bookrunners: | Citigroup and UBS Investment Bank
|
| Amount: | $275 million
|
| Greenshoe: | $25 million
|
| Maturity: | May 31, 2012
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Conversion premium: | 40%
|
| Conversion price: | C$56.0612
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before June 20, 2010, thereafter callable subject to hurdle at 130% of conversion price
|
| Puts: | None
|
| Price talk: | 3.75%-4.25%, up 35%-40%
|
| Pricing date: | May 10
|
| Distribution: | Regulation S
|
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