By Rebecca Melvin
New York, Dec. 16 - Klockner & Co Financial Services SA, a subsidiary of Klockner & Co SE, priced €186.2 million of seven-year convertible bonds on Thursday at par to yield 2.5% with an initial conversion premium of 35.07%, according to a news release.
The Regulation S offering priced at the rich end of talk, which was 2.5% to 3% for the coupon and 30% to 35% for the initial conversion premium.
Proceeds will be used for the company's expansion plans and for general corporate purposes.
The bonds will be non-callable until Dec. 22, 2015 and then provisionally callable subject to a 130% price hurdle. Holders can put the bonds on Dec. 22, 2015.
Klockner intends to list the bonds for trading on the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange.
Credit Suisse and Goldman Sachs International are acting as joint bookrunners and joint lead managers for the offering.
Duisburg, Germany-based Klockner is a steel distributor.
| Issuer: | Klockner & Co Financial Services SA
|
| Guarantor: | Klockner & Co. SE
|
| Issue: | Convertible senior notes
|
| Amount: | €186.2 million
|
| Maturity: | Dec. 15, 2017
|
| Bookrunners: | Credit Suisse, Goldman Sachs International
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 35.07%
|
| Conversion price: | €28.00
|
| Call: | Non-callable until Dec. 22, 2015, then provisionally callable subject to a 130% price hurdle
|
| Puts: | On Dec. 22, 2015
|
| Price talk: | 2.5%-3%, up 30%-35%
|
| Pricing date: | Dec. 16
|
| Settlement date: | Dec. 22
|
| Distribution: | Regulation S
|
| Stock symbol: | Xetra: KCO
|
| Stock reference price: | €20.73
|
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