Relo Group talks ¥23 billion 0% convertible bonds due 2027 with offer price of 109-112

By Abigail W. Adams

Portland, Me., Dec. 1 – Relo Group Inc. plans to price ¥23 billion of 0% convertible bonds due 2027 on Tuesday with price talk for an indicative offer price of 109 to 112, an issue price of 106.5 to 109.5 and a fixed conversion premium of 15%, according to a market source.

SMBC Nikko Capital Markets Ltd. is the bookrunner for the Regulation S offering.

The bonds are callable at par on or after Dec. 18, 2023 subject to a 130% hurdle. They are also subject to a tax or clean-up call.

The convertibles are redeemable upon a corporate or delisting event.

Approximately ¥10 billion will be used to repay the ¥25 billion outstanding of the company’s 0% convertible bonds due 2021, and ¥3 billion will be used for capital investments.

Remaining proceeds will be used for real estate purchases and general corporate purposes.

Relo Group is a Tokyo-based housing maintenance and management and corporate fringe benefit services company.

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