By Abigail W. Adams
Portland, Me., May 3 – Stobart Group Ltd. priced £53,075,000 of five-year bonds exchangeable into shares of Eddie Stobart Logistics plc on Friday at the cheap end of talk with a coupon of 2.75% and an initial conversion premium of 25%, according to a market source.
Price talk was for a coupon of 2.25% to 2.75% and an initial conversion premium of 25% to 35%.
The bonds will be issued by subsidiary Stobart Finance plc.
Stifel Nicolaus Europe Ltd. is the bookrunner for the Regulation S offering.
The bonds are non-callable for three years and then subject to a 130% hurdle or are callable at any time if 85% of the principal amount has been retired.
The bonds may be settled in cash, shares or a combination of both.
The company will make shares underlying the bonds available to bondholders through a stock lending arrangement, according to the news release.
The bonds will be listed for trade on the open market of the Frankfurt stock exchange.
Proceeds will be used to support the company’s growth plans in aviation and energy.
Stobart Group is a U.K.-based infrastructure and support services company.
| Issuer: | Stobart Finance plc
|
| Securities: | Secured guaranteed exchangeable bonds
|
| Amount: | £53,075,000
|
| Maturity: | May 8, 2024
|
| Bookrunner: | Stifel Nicolaus Europe Ltd.
|
| Coupon: | 2.75%
|
| Price: | Par
|
| Yield: | 2.75%
|
| Conversion premium: | 25%
|
| Conversion price: | £1.1875
|
| Call options: | Non-callable for three years and then subject to a 130% hurdle
|
| Pricing date: | May 3
|
| Settlement date: | May 8
|
| Distribution: | Regulation S
|
| Talk: | Coupon of 2.25% to 2.75% and initial conversion premium of 25% to 35%
|
| Stock symbol: | London: ESL
|
| Stock reference price: | £0.95
|
| Market capitalization: | £372.14 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
