Bekaert to price up to €380 million five-year convertible bonds to yield 1%-0.5%, up 27.5%-35%

By Rebecca Melvin

New York, May 19 – NV Bekaert SA plans to price up to €380 million of five-year convertible bonds, including a base deal of €250 million and €130 million increase option, that are talked to yield between 0% to 0.5% and with an initial conversion premium of 27.5% to 35%, according to a news release.

Bekaert is concurrently offering to repurchase its existing 0.75% convertibles due 2018 of which there are €300 million currently outstanding.

Proceeds of the new Regulation S deal will be used to repurchase the older bonds. If the company is not able to repurchase more than 50% of the existing deal, it reserves the right to cancel the new issue and repurchase offer.

The new bonds will be issued at par of €100,000 and are being sold via joint bookrunners BNP Paribas Fortis and J.P. Morgan Securities plc.

Settlement of the offering of new bonds is set for June 9. Settlement of the repurchase is set for June 14.

Application is being made to list the new bonds on the open market of the Frankfurt Stock Exchange.

Based in Kortrijk, Belgium, Bekaert specializes in steel wire transformation and coatings.

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