By Kenneth Lim
Boston, Jan. 23 - Germany's MTU Aero Engines Holding AG on Tuesday priced €165 million of five-year convertible senior unsecured bonds at the rich end of talk, at a coupon of 2.75% and an initial conversion premium of 35%.
The bonds were offered at par. They were talked at a coupon of 2.75% to 3.25% and an initial conversion premium of 30% to 35%.
There is an over-allotment option for a further €15 million.
Deutsche Bank is the bookrunner for the Regulation S offering.
The bonds are non-callable for the first three years, after which they may be called subject to a hurdle at 130% of the conversion price.
The bonds have dividend and takeover protection.
MTU is a Munich-based maker of aircraft engines. It did not specify how it will use the proceeds of the offering.
| Issuer: | MTU Aero Engines Holding AG
|
| Issue: | Convertible senior unsecured bonds
|
| Bookrunner: | Deutsche Bank
|
| Amount: | €165 million
|
| Greenshoe: | €15 million
|
| Maturity: | Five years
|
| Coupon: | 2.75%
|
| Price: | Par
|
| Yield: | 2.75%
|
| Conversion premium: | 35%
|
| Conversion price: | €49.50
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable three years, thereafter callable subject to 130% hurdle
|
| Price talk: | 2.75%-3.25%, up 30%-35%
|
| Pricing date: | Jan. 23
|
| Distribution: | Regulation S
|
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