By Abigail W. Adams
Portland, Me., Sept. 7 Siemens Energy Finance BV priced 960 million three-year mandatory convertible bonds on Wednesday at par with a coupon of 5.625% and an initial conversion premium of 17.5%, according to a company news release and a market source.
Pricing came at the cheap end of talk for a coupon of 5.125% to 5.625% and at the midpoint of talk for an initial conversion premium of 15% to 20%.
The initial size of the offering was 1 billion.
BofA Securities Inc. and J.P. Morgan Securities LLC were bookrunners for the Regulation S offering.
The notes will be guaranteed by parent company Siemens Energy AG (BBB).
In connection with the offering, bookrunners conducted a placement of shares to facilitate hedging activity.
The bonds will be traded on the Frankfurt Stock Exchange.
Proceeds will be used to partially finance Siemens cash tender offer for the outstanding shares of Siemens Gamesa for 18.05 per share.
Siemens is a Munich-based technology conglomerate focused on industry, infrastructure, transport and health care.
| Issuer: | Siemens Energy Finance BV
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| Guarantor: | Siemens Energy AG
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| Amount: | 960 million
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| Issue: | Mandatory convertible bonds
|
| Maturity: | Sept. 14, 2025
|
| Bookrunners: | BofA Securities Inc. and J.P. Morgan Securities LLC
|
| Coupon: | 5.625%
|
| Price: | Par
|
| Yield: | 5.625%
|
| Conversion premium: | 17.5%
|
| Pricing date: | Sept. 7
|
| Settlement date: | Sept. 14
|
| Distribution: | Regulation S
|
| Talk: | Coupon of 5.125% to 5.625% and initial conversion premium of 15% to 20%
|
| Stock symbol: | FRA: SIE
|
| Market capitalization: | 88.67 billion
|
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