By Rebecca Melvin
New York, Sept. 8 - Energy-focused private equity firm First Reserve Corp. sold $800 million of Glencore Finance (Europe) SA's 5% convertible bonds due 2014 in a secondary offering to mostly European investors at a price of 134.3 per bond.
The Glencore-issued convertibles are guaranteed by Glencore International AG and Glencore AG.
Concurrently with the convertibles sale, First Reserve purchased 141 million of Glencore ordinary shares.
The conversion price of the Regulation S deal still stands at the original initial conversion price of $5.66, which was set when the five-year paper originally priced. All other terms for the issue remain unchanged, according to a syndicate source. The paper matures Dec. 31, 2014.
Credit Suisse Securities (Europe) Ltd. and Morgan Stanley & Co. International plc, were the joint lead managers and joint bookrunners for the deal.
The bonds are non-callable until November 2012 and then provisionally callable subject to a 150% price hurdle. There are no puts.
Based in Baar, Switzerland, Glencore is a supplier of commodities and raw materials to industrial consumers.
First Reserve is using proceeds from the bond offering to express its bullish sentiment on Glencore stock, and it bought Glencore shares, most of which were purchased from hedge funds participating in the secondary convertibles offering.
Settlement of the bonds and the shares is set for Sept. 13.
First Reserve is a private equity investment firm focused on energy and natural resource industries with U.S. headquarters in Greenwich, Conn.
| Issuer: | Glencore Finance Europe SA
|
| Guarantors: | Glencore International AG and Glencore AG
|
| Issue: | Convertible bonds
|
| Amount: | $800 million
|
| Maturity: | Dec. 31, 2014
|
| Coupon: | 5%
|
| Price: | 134.3
|
| Calls: | Non-callable until November 2012, then provisionally callable subject to a 150% price hurdle
|
| Put option: | None
|
| Bookrunners: | Credit Suisse Securities (Europe) Ltd. and Morgan Stanley & Co. International plc
|
| Stock symbol: | London: GLEN
|
| Stock price: | 405.8p at close Sept. 7
|
| Settlement date: | Sept. 13
|
| Distribution: | Regulation S
|
| Market capitalization: | £28.1 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
