By Rebecca Melvin
New York, Feb. 21 - Nexans priced €240 million of seven-year convertible bonds in the Oceane structure at par to yield 2.5% with an initial conversion premium of 35%, according to a news release.
The Regulation S bonds were priced at par of €72.74, and each Oceane is convertible into one Nexans share.
There is a greenshoe for an additional €35 million.
Settlement is expected Feb. 29.
The issue came at the rich end of talk, which was for a 2.5% to 3% coupon and a 30% to 35% initial conversion premium.
Holders can put the bonds on June 1, 2018.
Proceeds will be used to refinance part of Nexans €280 million outstanding of Oceanes due Jan. 1, 2013.
HSBC and Societe Generale Corporate & Investment Banking were joint lead-managers and joint bookrunners for the new bonds and a reverse bookbuilding for the repurchase of the 2013 Oceane bonds.
Madeco Group, which holds 19.86% of the share capital and voting rights of Nexans, and Fonds Strategique d'Investissement, which holds 5.64% of the share capital and voting rights, have stated their intent not to participate in the offering.
Application is being made to list the new bonds on Euronext Paris.
Paris-based Nexans is a cable maker for the energy, transport and telecom industries.
| Issuer: | Nexans
|
| Issue: | Convertible Oceane bonds
|
| Amount: | €240 million
|
| Greenshoe: | €35 million
|
| Maturity: | Jan. 1, 2019
|
| Bookrunners: | HSBC and Societe Generale Corporate & Investment Banking
|
| Coupon: | 2.5%
|
| Price: | Par, €72.74
|
| Yield: | 2.5%
|
| Conversion premium: | 35%
|
| Conversion price: | €72.74
|
| Price talk: | 2.5%-3%, up 30%-35%
|
| Puts: | On June 1, 2018
|
| Pricing date: | Feb. 21
|
| Settlement date: | Feb. 29
|
| Distribution: | Regulation S
|
| Listing: | NYSE Euronext Paris
|
| Symbol: | NEX
|
| Stock price: | €53.10, close Feb. 21
|
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