By Kenneth Lim
Boston, April 12 - Singapore's Global Voice Group Ltd. priced €35 million of five-year 3% convertible bonds to yield 6.5% with an initial conversion premium of 8.1%.
The convertibles, which mature April 19, 2011, were offered at par. There is a greenshoe option for a further €5 million.
DBS Bank was the bookrunner.
The conversion price will be reset annually to the 30-day average closing stock price if that average falls below the initial conversion price of S$0.20, subject to a floor of S$0.146. Global Voice stock last traded at S$0.18 on the Singapore Exchange.
The convertibles are non-callable for the first three years, and are callable after that only if the stock exceeds 130% of the conversion price. There is a put in the third year.
The convertibles have dividend and takeover protection.
Global Voice has given a negative pledge, and cross-default is subject to a €5 million threshold.
The convertibles will be listed in Singapore.
Global Voice is a Singapore-based operator of fiber networks with European headquarters in Frankfurt, Germany. It plans to use proceeds from the offering to fund acquisitions, investments and capital expenditure. The acquisition agreement with Viatel was announced in February this year.
| Issuer: | Global Voice Group Ltd.
|
| Issue: | Convertible notes
|
| Bookrunner: | DBS Bank
|
| Amount: | €35 million
|
| Greenshoe: | €5 million
|
| Maturity: | April 19, 2011
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 6.5%
|
| Conversion premium: | 8.1%
|
| Conversion price: | S$0.20
|
| Conversion price resets: | Annually if stock is trading below conversion price, subject to S$0.146 floor
|
| Dividend protection: | Yes
|
| Takeover protection: | Change of control put
|
| Call protection: | Non-callable 3 years, then callable if stock price exceeds 130% of conversion price
|
| Puts: | Year 3
|
| Pricing date: | April 12
|
| Settlement date: | April 19
|
| Listing: | Singapore
|
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