Umicore talks €500 million 0% convertibles due 2025, up 27.5%-37.5%

By Abigail W. Adams

Portland, Me., June 15 – Umicore SA plans to price €500 million of 0% convertible bonds due 2025 at par with price talk for an initial conversion premium of 27.5% to 37.5%, according to a company news release.

J.P. Morgan Securities plc is the global coordinator and bookrunner for the offering, which is being marketed to qualified investors in the United Kingdom and European Economic Area.

The notes are non-callable until July 14, 2023 and then subject to a 130% hurdle.

The company will convene a shareholder meeting by April 30, 2021 to seek approval for certain provisions of the bond. If the provisions are not approved, the bonds will be redeemed at the greater of 102% of the principal amount or 102% of the fair market value for the bonds.

There will be a concurrent equity offering for subscribers of the bonds to help facilitate hedging transactions.

Proceeds will be used for general corporate purposes and to fund strategic developments in the company’s clean mobility materials and recycling areas.

Umicore is a Brussels based global materials technology and recycling group.

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