By Abigail W. Adams
Portland, Me., Feb. 23 – ENCE Energěa y Celulosa, SA priced €160 million of five-year convertible bonds after the market close on Thursday at par with a coupon of 1.25% and an initial conversion premium of 40%.
Initial price talk had been for a coupon of 0.625% to 1.375% and an initial conversion premium of 35% to 40%, according to a company news release.
The bonds will have a nominal value of €100,000 and will be issued at par of their nominal value.
BNP Paribas is the bookrunner for the deal, which is being offered to qualified investors in the European Economic Area.
There was heavy demand during the subscription process with orders reaching €600 million, nearly quadruple the amount of the offering, according to a company news release.
The bonds are non-callable for three years and then callable subject to a 130% hurdle or if less than 15% of the bonds remain outstanding, according to a company news release.
Upon conversion, ENCE will have the option to deliver new or existing shares, or a combination of both.
The shares underlying the bonds represent about 8.9% of ENCE’s share capital.
Proceeds will be used for the voluntary repurchase of the company’s 5.375% convertible bonds due 2022 and for general corporate purposes.
ENCE is a Madrid, Spain-based operator of pulp mills for pulp manufacturing and biomass.
| Issuer: | ENCE Energěa y Celulosa, SA
|
| Securities: | Convertible bonds
|
| Amount: | €160 million
|
| Maturity: | 2023
|
| Bookrunner: | BNP Paribas
|
| Coupon: | 1.25%
|
| Price: | Par of €100,000
|
| Yield: | 1.25%
|
| Conversion premium: | 40%
|
| Conversion price: | €7.2635
|
| Call options: | Non-callable for three-years then at a 130% hurdle or if 15% or less of the principal is outstanding
|
| Pricing date: | Feb. 22
|
| Settlement date: | March 5
|
| Talk: | Coupon of 0.625% to 1.375% and an initial conversion premium of 35% to 40%
|
| Stock symbol: | BME: ENC
|
| Stock price: | €5.10 as of market close Feb. 22
|
| Market capitalization: | €1.281 billion
|
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