By Abigail W. Adams
Portland, Me., April 17 – Nexi SpA priced €500 million of seven-year equity-linked bonds on Friday at par with a coupon of 1.75% and an initial conversion premium of 50%, according to a market source.
Pricing came at the cheap end of talk for a coupon of 1% to 1.75% and at the rich end of talk for an initial conversion premium of 45% to 50%.
BofA Securities, Banca IMI SpA, Goldman Sachs International, HSBC and JPMorgan were joint global coordinators and bookrunners for the Regulation S offering, with distribution limited to qualified institutional investors in the European Economic Area and the United Kingdom and accredited investors in Canada.
The notes are non-callable until May 16, 2025 and then subject to a 130% hurdle above parity. The notes are putable upon a change of control.
There is dividend protection.
Concurrently with the pricing of the equity-linked bonds, the bookrunners are engaging in an accelerated bookbuilding process for the placement of existing shares in short sales to facilitate hedging.
The bonds are subject to shareholder approval at a general meeting to be held on Dec. 31, 2020.
If shareholder approval is not granted, then the company will redeem the bonds at the greater of 102% of the principal plus accrued interest or 102% of the fair bond value plus accrued interest.
Proceeds will be used to fund a portion of the acquisition of Banca Intesa San Paulo SpA and for general corporate purposes.
Nexi is a Milan, Italy-based is a bank specializing in payment systems.
| Issuer: | Nexi SpA
|
| Securities: | Equity-linked bonds
|
| Amount: | €500 million
|
| Maturity: | April 24, 2027
|
| Bookrunners: | BofA Securities, Banca IMI SpA, Goldman Sachs International, HSBC and JPMorgan
|
| Coupon: | 1.75%
|
| Price: | Par
|
| Yield: | 1.75%
|
| Conversion premium: | 50%
|
| Conversion price: | €19.47
|
| Call options: | Non-callable until May 16, 2025 and then subject to a 130% hurdle
|
| Put options: | Upon a change of control
|
| Pricing date: | April 17
|
| Settlement date: | April 24
|
| Distribution: | Regulation S
|
| Talk: | Coupon of 1% to 1.75% and initial conversion premium of 45% to 50%
|
| Stock symbol: | BIT: NEXI
|
| Stock reference price: | €12.98
|
| Market capitalization: | €8.45 billion
|
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