By Rebecca Melvin
New York, Nov. 11 – Flight Centre Travel Group Ltd. priced A$400 million of 2.5% seven-year convertible notes at par with an initial conversion premium of 31%, according to a company release.
The company is also placing about 5.2 million ordinary shares concurrently with the pricing of notes to facilitate hedging. The clearing price was A$15.30 per share, which represented a discount of 2.5% to the closing price of the ordinary shares on Nov. 10. The initial conversion price is A$20.04.
Pricing came toward the rich end of 2.25% to 3% coupon talk and toward the cheap end of the 30% to 35% talk for the premium.
The notes are callable at par on Nov. 17, 2024. Holders may also put the notes after four years on Nov. 17, 2024 at par. They also have dividend and takeover protection.
Goldman Sachs International and BofA Securities (Merrill Lynch Equities (Australia) Ltd.) are joint bookrunners and joint lead managers of the Regulation S deal, for which proceeds are intended to be used to repay A$100 million of existing debt, with remaining proceeds applied to further strengthen FLT’s liquidity position.
The notes are expected to be listed on the Singapore Exchange Securities Trading Ltd.
The travel agency is based in Brisbane, Australia.
| Issuer: | Flight Centre Travel Group Ltd.
|
| Securities: | Convertible senior notes
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| Amount: | A$400 million
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| Maturity: | Nov. 17, 2027
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| Bookrunners: | Goldman Sachs International and BofA Securities
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| Coupon: | 2.5%
|
| Price: | Par
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| Conversion premium: | 31%
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| Conversion price: | A$20.04
|
| Call option: | Non-callable for four years
|
| Put option: | At par on Nov. 17, 2024
|
| Stock reference price: | A$15.30
|
| Pricing date: | Nov. 11
|
| Settlement date: | Nov. 17
|
| Distribution: | Regulation S
|
| Price talk: | 2.25%-3%, up 30%-35%
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