Sika talks CHF 1.3 billion three-year mandatory convertible notes to yield 3.75%-4%, up 12.5%-15%

By Abigail W. Adams

Portland, Me., Jan. 22 – Sika AG plans to price CHF 1.3 billion of three-year mandatory convertible notes on Wednesday with price talk for a coupon of 3.75% to 4% and an initial conversion premium of 12.5% to 15%, according to a company news release.

UBS is global coordinator and joint bookrunner for the Regulation S deal. Citigroup is also a joint bookrunner.

The reference share price will be equal to the share price of a concurrent placement of existing shares from hedging transactions.

Sika may elect at its discretion to defer payment of interest on the notes with interest payments in arrears to be satisfied at the option of Sika or mandatorily upon the occurrence of certain events, according to the press release.

Proceeds will be used to fund the acquisition of Parex and for general corporate purposes.

Sika is a Baar, Switzerland-based specialty chemicals company.

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