By Rebecca Melvin
New York, May 16 - 3i Group plc priced £430 million of three-year unsecured convertible bonds on Thursday at par to yield 3.625% with an initial conversion premium of 28.5%, according to a syndicate source.
The bonds priced at the rich end of talk for the coupon, which was 3.625% to 4.125%, and at the midpoint of talk for the premium, which was 25% to 30%.
Proceeds of the bonds will be used to refinance 3i's existing €550 million of 1.375% convertible bonds that mature Aug. 1.
Dresdner Kleinwort and Lehman Brothers are joint bookrunners of the offering.
3i will also enter into call spread overlay agreements aimed at raising the effective conversion premium for the company to about 60% above the market reference price.
The bonds are expected to be listed on the Professional Securities Market of the London Stock Exchange.
3i is a U.K.-based venture capital and private equity firm.
| Issuer: | 3i Group plc
|
| Issue: | Convertible unsecured unsubordinated notes
|
| Amount: | £430 million
|
| Maturity: | May 29, 2011
|
| Bookrunners: | Dresdner Kleinwort and Lehman Brothers
|
| Coupon: | 3.625%
|
| Price: | Par
|
| Yield: | 3.625%
|
| Conversion premium: | 28.5%
|
| Call option: | Non-callable
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Pricing date: | May 15
|
| Settlement date: | May 29
|
| Price talk: | 3.625%-4.125%, up 25%-30%
|
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