By Abigail W. Adams
Portland, Me., Jan. 5 – Michelin priced an upsized $600 million in five-year cash-settled convertible bonds Friday at a price of 95.5 and a yield of 0.79%.
The deal came at the cheap end of talk for an initial issue price of 95.5 to 100 and a yield of 0% to 0.79%.
Michelin exercised the $100 million increase option on the originally announced amount of $500 million.
The convertible bonds due Nov. 10, 2023 will carry a coupon of 0% and a conversion premium of 30%, according to a company release.
The conversion premium will be set relative to the 10-day average daily volume-weighted average price of the shares in euros on the Euronext Paris exchange for the period beginning Jan. 8.
Societe General Corporate & Investment Banking is the global coordinator and lead bookrunner for the deal. BNP Paribas, HSBC and JPMorgan are acting as joint bookrunners.
The bonds will be issued in $200,000 denominations. The conversion ratio will be the value of the bonds converted into euros and divided into the initial conversion price.
The share reference price and initial conversion price is expected to be announced on Jan. 19.
The dollar-denominated debt was immediately converted into euros. The bonds will be traded on the open market of Euronext Paris.
Proceeds from the deal will be used for general corporate purposes and the purchase of cash-settled call options, according to a company release.
Michelin is a Clermont-Ferrand, France-based tire manufacturing company.
| Issuer: | Michelin
|
| Issue: | Cash-settled convertible notes
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| Amount: | $600 million
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| Maturity: | Nov. 10, 2023
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| Coupon: | 0%
|
| Price: | 95.5
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| Yield: | 0.79%
|
| Conversion premium: | 30%
|
| Conversion price: | To be set on Jan. 19
|
| Conversion rate: | To be set on Jan. 19
|
| Bookrunners: | Societe General Corporate & Investment Banking, BNP Paribas, HSBC, and JPMorgan
|
| Distribution: | Institutional investors outside United States, Australia and Canada
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| Pricing date: | Jan. 5
|
| Settlement date: | Jan. 10
|
| Stock symbol: | EPA: ML
|
| Stock price: | €123.45 as of Jan. 4
|
| Market capitalization: | €22.6 billion
|
| Talk: | 0% to 0.79%
|
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