Electra Private Equity determines split of 5% convertibles issue between placees, shareholders

By Angela McDaniels

Tacoma, Wash., Dec. 22 - Electra Private Equity plc will issue £66.32 million of 5% subordinated convertible bonds due 2017 to investors who participated in its Nov. 30 placement and £33.68 million to existing shareholders, according to a company news release.

The company priced £100 million of the convertibles on Nov. 30. J.P. Morgan Cazenove, the global coordinator and bookrunner, found placees for the entire issue, but the actual amount issued to these investors was dependent on the results of an open offer, which closed on Tuesday.

In the open offer, qualifying shareholders could subscribe for bonds pro rata to their current holdings of ordinary shares at the issue price.

The issue is conditioned on the receipt of shareholder approval. Shareholders will vote on the issue at a meeting on Dec. 23.

As previously reported, the convertibles were priced at par of £1,000 to yield 5% with an initial conversion premium of 27.5%. The initial conversion price will be 2,050p.

The convertibles are expected to settle and begin trading on the London Stock Exchange on Dec. 29.

Proceeds will be used to expand the capital base of the company.

London-based Electra is a close-ended equity investment fund.

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