Seven Group talks A$250 million five-year exchangeable notes at 3.875%-4.625%, up 30%

Chicago, Oct. 6 – Seven Group Holdings Ltd. is in the market with a A$250 million Regulation S offering of five-year notes exchangeable for ordinary shares of Boral Ltd., according to a notice.

The initial exchange premium is being talked in the 30% area. The coupon is talked at 3.875% to 4.625%.

There is an investor put option at the three-year point.

The exchange property will initially be approximately 66.3 million Boral shares.

The reference price is the clearing price of the concurrent delta placement, 33.1 million Boral shares.

Seven Group will participate in the delta placement, at least to its pro rata portion of its existing ownership interest of 69.6% in Boral. Potentially, Seven Group could acquire the entire delta placement.

Macquarie Bank Ltd. intends to initially make Boral shares available for borrowing to facilitate investor hedging activities.

Noteholders will be able to exchange their notes into company shares starting after one year from the settlement date to seven days before the maturity date.

Seven Group is conducting a concurrent repurchase offer for the company’s outstanding convertible notes due 2025.

Merrill Lynch Equities (Australia) Ltd. is the bookrunner.

Merrill Lynch Equities (Australia) and Macquarie Capital (Australia) Ltd. are acting as co-managers in respect of the offering.

Macquarie Capital (Australia) is working as structuring adviser for the offering.

Seven Group is an Australian diversified operating and investment group with market leading businesses and investments in industrial services, oil and gas and media.

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