By Rebecca Melvin
New York, Oct. 3 - Unite Jersey Issuer Ltd, a subsidiary of the Unite Group plc, launched and priced £89.9 million of five-year convertible bonds at par on Thursday to yield 2.5% with an initial conversion premium of 35% above the volume weighed average price of shares between launch and pricing, according to a news release.
The Regulation S deal priced at the rich end of talk, which was for a 2.5% to 3% coupon and a 30% to 35% initial conversion premium.
The initial conversion price was set at 509.73p per share.
Joint bookrunners were J.P. Morgan Securities plc and the Royal Bank of Scotland plc. Rothschild was acting as financial adviser to the company.
The notes are non-callable for three years and then are provisionally callable if shares reach 130% of the conversion price.
Proceeds will be used to replace short-term debt and to fund the group's regional development program.
Settlement is expected Oct. 10.
Bristol, England-based Unite develops and manages student accommodation.
| Issuer: | Unite Jersey Issuer Ltd.
|
| Guarantor: | Unite Group plc
|
| Issue: | Convertible bonds
|
| Amount: | £89.9 million
|
| Maturity: | Oct. 10, 2018
|
| Bookrunners: | J.P. Morgan Securities plc, the Royal Bank of Scotland plc
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 35%
|
| Conversion price: | 509.73p
|
| Price talk: | 2.5%-3%, up 30%-35%
|
| Pricing date: | Oct. 3
|
| Settlement date: | Oct. 10
|
| Stock symbol: | London: UTG
|
| Stock price: | 388.20p as of close Oct. 2
|
| Market capitalization: | £685.28 million
|
| Distribution: | Regulation S
|
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