By Rebecca Melvin
New York, Sept. 27 - Sagerpar, a subsidiary of Groupe Bruxelles Lambert SA, priced €428.45 million of 0.375% five-year convertible bonds at par for a yield to maturity of 1.375% and a 35% initial conversion premium, according to a news release.
The securities, which will be redeemed at maturity at 105.14% of par, boosting the premium to 42%, were structured as exchangeable bonds issued by the subsidiary and convertible into 5 million existing treasury shares of the parent company.
Citigroup Global Markets Ltd., Morgan Stanley & Co. International plc and BNP Paribas Fortis SA/NV were joint bookrunners of the Regulation S deal.
The bonds will be non-callable until Oct. 31, 2016, the provisionally callable if shares rise to 130% of the conversion price.
Proceeds are for general financing needs and to extend the company's debt maturity profile at currently attractive cost of funding conditions.
The bonds are expected to be listed on the Euro MTF market of the Luxembourg Stock Exchange.
Groupe Bruxelles is a Belgian industrial holding company.
| Issuer: | Sagerpar (Groupe Bruxelles Lambert)
|
| Underlying stock: | Groupe Bruxelles Lambert SA
|
| Issue: | Exchangeable bonds
|
| Amount: | €428.4 million
|
| Maturity: | Oct. 9, 2018
|
| Coupon: | 0.375%
|
| Price: | Par
|
| Redemption price at maturity: | 105.14
|
| Yield: | 1.375%
|
| Initial conversion premium: | 35%
|
| Conversion price: | €90.08
|
| Call: | After Oct. 31, 2016, then provisionally callable at 130% price hurdle
|
| Bookrunners: | Citigroup Global Markets Ltd., Morgan Stanley & Co. International plc, BNP Paribas Fortis SA/NV
|
| Share reference price: | €63.465
|
| Pricing date: | Sept. 27
|
| Settlement date: | Oct. 9
|
| Distribution: | Regulation S
|
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