New York, Nov. 7 - Man Group plc priced £350 million of convertible bonds due 2009 Thursday to yield 3.75% with a 31.95% initial conversion premium via bookrunner Merrill Lynch International.
The issue was upsized from a planned £325 million and priced at the rich end of talk. Talk put the coupon at 3.75% to 4.375% and the conversion premium at 25% to 32%.
Based on talk, Deutsche Bank Securities analysts calculated the theoretical value of the issue at between 103.90 and 109.53. For assumptions, they used a credit spread of 250 basis points, 35% volatility on the stock and a stock borrow of 250 basis points.
Proceeds will be used for general corporate purposes; initially they will be used to pay down bank borrowings. The offering will extend the company's maturity profile, Man Group said.
As well as Merrill Lynch, the underwriting syndicate also include Credit Suisse First Boston is co-lead manager and ABN AMRO Rothschild and HSBC as co-managers.
Man Group issued the bonds through Forester Ltd., a special purpose Guernsey company.
The deal was offered outside the U.S. under Regulation S. It was not offered to investors in the U.S., Canada, Japan and Australia.
| Issuer: | Man Group plc
|
| Issue: | Convertible bonds
|
| Amount: | £350 million
|
| Greenshoe: | £50 million
|
| Maturity: | 2009
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Conversion premium: | 31.95%
|
| Conversion price: | 1282 pence
|
| Pricing date: | Nov. 7
|
| Settlement: | Nov. 12
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
