By Stephanie N. Rotondo
Seattle, Oct. 25 – Intu Properties plc sold £375 million of 2.875% guaranteed convertible bonds due 2022 at par on Tuesday, the company said in a press release.
The notes priced with a 30% initial conversion premium over the weighted average price of shares between launch and pricing.
Price talk was for a yield of 2.375% to 2.875% and an initial conversion premium of 30% to 35%. The deal came upsized from £350 million.
The convertibles will be issued by Intu (Jersey) 2 Ltd. and guaranteed by the parent.
BofA Merrill Lynch, Credit Suisse and HSBC are the joint bookrunners. UBS Securities LLC is a co-bookrunner.
The debt is convertible into ordinary shares at a rate of 375.06p per share. The conversion rate could be downwardly adjusted if the cash dividend paid in any year is above 13.7p per share.
In certain conditions, the company can opt to settle the conversion in cash or shares, or a combination thereof.
The bonds are callable at par plus accrued interest on or after Nov. 23, 2020 if the stock crosses a 130% price threshold for 20 out of 30 consecutive trading days, or if 15% or less of the issue remains outstanding.
Proceeds will be used to complete committed pipeline developments of £212 million over the next two years; to refinance a £101 million draw on a revolving credit facility; and for general corporate and working capital purposes.
Intu is a United Kingdom-based real estate investment trust.
| Issuer: | Intu (Jersey) 2 Ltd.
|
| Guarantor: | Intu Properties plc
|
| Securities: | Guaranteed convertible bonds
|
| Amount: | £375 million
|
| Maturity: | Nov. 1, 2022
|
| Bookrunners: | BofA Merrill Lynch, Credit Suisse, HSBC
|
| Co-bookrunner: | UBS Securities LLC
|
| Co-manager: | Lloyds
|
| Coupon: | 2.875%
|
| Price: | Par
|
| Yield: | 2.875%
|
| Conversion premium: | 30%
|
| Conversion price: | 375.06p per share
|
| Contingent conversion: | Yes, upon 130% stock price threshold in any 20 out of 30 trading days
|
| Pricing date: | Oct. 25
|
| Settlement date: | Nov. 1
|
| Talk: | 2.375% to 2.875% yield, up 30%-35%
|
| Stock symbol: | London: INTU
|
| Stock price: | 291.2p at close Oct. 24
|
| Market capitalization: | £3.8 billion
|
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