By Rebecca Melvin
New York, Sept. 5 - Enterprise Funding Ltd., a subsidiary of Enterprise Inns plc, launched and priced £97 million of seven-year convertible senior bonds Thursday at par to yield 3.5% with an initial conversion premium of 35%, according to a news release.
The deal priced at the rich end of talk which was set at 3.5% to 4% for the yield and 30% to 35% for the conversion premium.
The Regulation S offering was priced concurrently with an accelerated secondary equity placement of ordinary shares, which was the basis of the bonds' reference share price of £1.4150.
The bonds' initial conversion price has been set at £1.9103.
Barclays Bank plc and Deutsche Bank AG, London Branch were the joint bookrunners of the offering, with Royal Bank of Scotland plc acting as a co-bookrunner.
Proceeds will be used to reduce the company's current level of pub disposals and help drive growth with lower cost financing. The company said that due to the offering it will not need to draw down a £70 million tranche A of the Forward Start Facility commencing December 2013, which carries an interest cost of 500 basis points to 650 bps over Libor.
Settlement is expected Sept. 10.
Based in Solihull, West Midlands, in England, Enterprise Inns is a leased and tenanted pub company.
| Issuer: | Enterprise Funding Ltd.
|
| Guarantor: | Enterprise Inns plc
|
| Issue: | Convertible senior bonds
|
| Amount: | £97 million
|
| Maturity: | 2020
|
| Bookrunners: | Barclays Bank plc and Deutsche Bank AG, London Branch
|
| Co-bookrunner: | Royal Bank of Scotland plc
|
| Coupon: | 3.5%
|
| Price: | Par
|
| Yield: | 3.5%
|
| Conversion premium: | 35%
|
| Conversion price: | £1.9103
|
| Pricing date: | Sept. 5
|
| Settlement date: | Sept. 10
|
| Distribution: | Regulation S
|
| Stock symbol: | London: ETI
|
| Share reference price: | £1.4150
|
| Market capitalization: | £741.1 million
|
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