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Faurecia calls Oceanes due 2018, could trigger mass notes conversion
By Susanna Moon
Chicago, Dec. 7 – Faurecia said it called its 8,479,891 of outstanding convertible bonds due Jan. 1, 2018 issued in the Oceane structure.
The Oceanes will be redeemed on Jan. 15 at par of €19.48 plus accrued interest, or an early redemption of €19.504 per Oceane, according to a company notice.
The Oceanes are convertible up to and including the seventh business day preceding the early redemption date, or Jan. 6, at the ratio of 1.02 Faurecia shares for each Oceane.
Faurecia said it may choose to deliver new shares, existing shares or a combination of both.
Holders who exercise the conversion option by 11 a.m. ET on Dec. 31 will receive shares in January with a date of dividend right from Jan. 1, 2015.
For conversion requests made between 11 a.m. ET on Dec. 31 and 11 a.m. ET on Jan. 6, the new shares will be delivered with a date of dividend right from Jan. 1 and therefore will be in eligible to receive the dividend that could be paid for the year 2015.
Holders who convert their Oceanes in 2016 will receive a coupon of about €0.63 per bond on Jan. 1.
Holders who have not exercised their conversion options by 11 a.m. ET on Jan. 6 will receive €19.504 per Oceane on Jan. 15.
A total of 12,833,675 bonds initially were issued in September 2012.
The early redemption of the 2018 Oceanes will result in a significant reduction of debt, according to a separate announcement.
The company’s share price is significantly higher than the bond redemption price, and the call is likely to lead to the conversion of most of the bonds issued, the company noted.
At the end of November, 4.35 million of the bonds had been converted into shares.
The company’s stock (EPA: EO) closed at €35.46 on Friday.
Faurecia is a Nanterre, France-based automotive equipment supplier.
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