By Rebecca Melvin
New York, May 24 - Amorim Energia BV priced €350 million of five-year bonds exchangeable into ordinary shares of Galp Energia SGPS SA at par to yield 3.375%, with an initial conversion premium of 30% over the volume weighted average price of shares on the NYSE Euronext Lisbon between launch and pricing, according to a news release.
The bonds are exchangeable into about 25.17 million shares, representing 3% of Galp's current outstanding share capital.
The Regulation S deal has a €50 million over-allotment option and was priced via joint bookrunners BofA Merrill Lynch and Societe Generale.
The bonds are non-callable for three years and then provisionally callable if shares rise to 130% of their exchange price. Holders have the right to put the bonds after 3.5 years.
Proceeds will be used for refinancing of existing debt and increasing its cash position to manage future debt maturities.
Application will be made to list the bonds on the Open Market segment of the Frankfurt Stock Exchange.
Based in Amsterdam, Amorim Energia is a Portuguese energy company that controls 38.34% of Lisbon-based Galp, which is Portugal's only oil and gas operator.
| Issuer: | Amorim Energia BV
|
| Issue: | Exchangeable senior bonds
|
| Underlying shares: | Galp Energia SGPS SA
|
| Amount: | €350 million
|
| Greenshoe: | €50 million
|
| Maturity: | 2018
|
| Bookrunners: | BofA Merrill Lynch, Societe Generale
|
| Coupon: | 3.375%
|
| Price: | Par
|
| Yield: | 3.375%
|
| Initial conversion premium: | 30%
|
| Exchange price: | €15.8919
|
| Calls: | Non-callable for three years, then provisionally callable at 130% price hurdle
|
| Puts: | Put after 3.5 years
|
| Settlement date: | June 3
|
| Distribution: | Regulation S
|
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