Veoneer talks $150 million five-year convertible notes to yield 3.75%-4.25%, up 25%-30%

By Abigail W. Adams

Portland, Me., May 20 – Veoneer, Inc. plans to price $150 million of five-year convertible notes after the market close on Wednesday with price talk for a coupon of 3.75% to 4.25% and an initial conversion premium of 25% to 30%, according to a market source.

Morgan Stanley is the bookrunner for the registered offering, which carries a greenshoe of $22.5 million.

The notes are non-callable for three years and then subject to a 130% hurdle with a make-whole.

There is takeover protection.

The deal is pricing concurrently with a $350 million common stock offering, which carries a greenshoe of $52.5 million.

Proceeds will be used for general corporate purposes and working capital, including for acquisition or investments in complementary businesses or joint ventures.

Veoneer is a Stockholm, Sweden-based automotive safety electronics developer and manufacturer.

© 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.