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Michelin sets conversion price for $500 million 0% bonds due 2022
By Susanna Moon
Chicago, Jan. 19 – Michelin said it calculated the initial conversion price of the non-dilutive cash-settled convertible bonds due 2022.
The initial conversion price was set at €133.9748, which is a premium of 28% over the company’s reference price of €104.6678, according to a company announcement.
As previously reported, Michelin sold an upsized $500 million of the five-year non-dilutive cash-settled convertible bonds at par with a yield of 0% on Jan. 5. The offering was initially expected to total $400 million.
Settlement occurred on Jan. 10.
The reference share price was calculated as the volume weighted average price of the company’s shares over a 10-day period beginning Jan. 6.
The dollar-denominated paper immediately converted to euros upon issuance. The company noted that because of the terms and the conversion to euros, it was able to “raise a euro financing with a negative yield.”
Michelin is a Clermont-Ferrand, France-based tire manufacturer.
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