By Rebecca Melvin
New York, Jan. 28 - Czech Republic's CEZ MH BV, a subsidiary of CEZ AS, priced €470.2 million of 3.5-year 0% bonds exchangeable into shares of MOL Hungarian Oil and Gas plc, according to a news release. The bonds have an initial exchange premium of 35%.
The Regulation S bonds with par value of €100,000 priced at the rich end of talk for a 0% to 0.5% coupon and 30% to 35% initial conversion premium talk.
The premium was set over the volume weighted average price of shares on the Budapest Stock Exchange between launch and pricing of HUF 13,796.40 per share, converted into euros based on a EUR-HUF exchange rate of 1:304.1.
The deal was originally talked at €450 million in size. Joint bookrunners were Barclays Bank plc and Deutsche Bank AG, London Branch, which acted as joint global coordinators, and HSBC Bank plc and Societe Generale CIB.
Bondholders can exchange the bonds after Jan. 25, 2017.
The bonds mature Aug. 4, 2017 and will be redeemed at par in cash, shares or a combination of shares and cash.
The bonds are non-callable until Feb. 24, 2017 and then provisionally callable if shares exceed 130% of the principal amount of the bonds' conversion price.
CEZ will use the proceeds for general corporate purposes.
Application will be made to list the bonds on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange.
CEZ is a Prague-based conglomerate focused on electricity, trade and coal mining.
| Issuer: | CEZ MH BV
|
| Guarantor: | CEZ AS
|
| Issue: | Exchangeable bonds
|
| Exchangeable entity: | MOL Hungarian Oil and Gas plc
|
| Amount: | €470.2 million
|
| Maturity: | Aug. 4, 2017
|
| Bookrunners: | Barclays Bank plc, Deutsche Bank AG, London Branch, HSBC Bank plc, and Societe Generale CIB
|
| Coupon: | 0%
|
| Price: | Par, €100,000
|
| Yield: | 0%
|
| Initial conversion premium: | 35%
|
| Initial conversion price: | €61.25 per share (exchange rate 1:304.1)
|
| Calls: | Non-callable until Feb. 24, 2017, then provisionally callable subject to a 130% price hurdle
|
| Put: | On Jan. 25, 2017
|
| Net share settlement: | Yes
|
| Price talk: | 0%-0.5%, up 30%-35%
|
| Stock symbol: | Budapest: MOL
|
| Stock reference price: | HUF 13,796.40
|
| Pricing date: | Jan. 28
|
| Settlement date: | Feb. 4
|
| Distribution: | Regulation S
|
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