By Rebecca Melvin
New York, Dec. 8 - UBS AG priced $219.38 million of 18-month mandatorily exchangeable notes linked to shares of Stillwater Mining Co. with a 9.375% dividend and a 17.5% initial threshold premium, according to a syndicate source.
The amount of the issuance includes a $28.275 million greenshoe, which was fully exercised.
The mandatories came toward the rich end of dividend talk, which was 9.25% to 9.75%, and at the midpoint of premium talk, which was 15% to 20%.
The registered notes, with a $25 par value, were sold via bookrunner UBS Securities LLC.
Concurrently, $721 million of common stock was sold in a secondary offering. The stock was sold by Stillwater's majority stockholder, Norimet Ltd., and was aimed at reducing Norimet's stake to almost zero.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, UBS Securities LLC and VTB Capital plc were joint bookrunners for the public offering of common stock.
The combined sale was expected to encompass 49.8 million shares, which is equal to 51% of shares outstanding and represents Norimet's entire position.
UBS purchased underlying shares from the seller and repackaged them as mandatory exchangeables. Stillwater Mining will not receive any proceeds from either transaction.
UBS AG is Switzerland's biggest bank.
Stillwater Mining is a Billings, Mont.-based palladium and platinum producer.
| Issuer: | UBS AG
|
| Issue: | Mandatory exchangeable notes
|
| Underlying stock: | Stillwater Mining Co.
|
| Amount: | $219.375 million, including fully exercised $28.275 million greenshoe
|
| Maturity: | June 15, 2012
|
| Concurrent offering: | $721 million secondary offering of common stock at $19.50 per share
|
| Bookrunners: | UBS Securities LLC
|
| Dividend: | 9.375%
|
| Price: | Par, $25
|
| Yield: | 9.375%
|
| Conversion premium: | 17.5%
|
| Threshold appreciation price: | $22.91
|
| Minimum conversion ratio: | 1.09111 shares
|
| Maximum conversion ratio: | 1.28205 shares
|
| Price talk: | 9.25%-9.75%, up 15%-20%
|
| Pricing date: | Dec. 7
|
| Distribution: | Registered
|
| Stock symbol: | NYSE: SWC
|
| Stock reference price: | $19.50
|
| Market capitalization: | $1.88 billion
|
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