By Rebecca Melvin
New York, Feb. 8 - Kuka AG priced €58.8 million five-year convertibles at par of €100,000 to yield 2% with an initial conversion premium of 26%, according to company news release.
The Regulation S deal size was toward the high end of a talked €55 million to €60 million, at the cheap end of 1.75% to 2% coupon talk and at the midpoint of 25% to 27% premium talk.
The initial conversion price is €36.8067, and the notes are initially convertible into up to 1.59 million newly issued bearer shares.
The bonds are non-callable for three years and then are provisionally callable if the price of Kuka shares is above 130% of the conversion price over a specified period.
Goldman Sachs International, Joh. Berenberg, Gossler & Co. KG and UniCredit Bank AG acted as joint bookrunners.
Proceeds will be used for balance sheet improvement in the medium term, as well as to increase financial flexibility.
The bonds are expected to be included for trading on the non-regulated open market segment of the Frankfurt stock exchange.
Augsburg, Germany based Kuka develops industrial automation processes including robotics.
| Issuer: | Kuka AG
|
| Issue: | Convertible bonds
|
| Amount: | €58.8 million
|
| Bookrunners: | Goldman Sachs International, Joh. Berenberg, Gossler & Co. KG, UniCredit Ban AG
|
| Coupon: | 2%
|
| Price: | Par
|
| Yield: | 2%
|
| Conversion premium: | 26%
|
| Conversion price: | €36.8067
|
| Calls: | Non-callable for three years, then provisionally callable at 130% price hurdle
|
| Price talk: | 1.75%-2%, up 25%-27%
|
| Announcement date: | Feb. 8
|
| Settlement date: | Feb. 12
|
| Distribution: | Regulation S
|
| Stock symbol: | Germany: KU2
|
| Market capitalization: | €1.07 billion
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