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Bekaert plans to buy €284 million 0.75% convertibles, redeem the rest
By Wendy Van Sickle
Columbus, Ohio, May 19 – NV Bekaert SA said it received offers for €284 million, or 94.9%, of its outstanding €300 million of 0.75% convertible bonds due 2018 to be repurchased during a reverse bookbuilding.
Bekaert priced €380 million of senior convertible bonds due June 2021, including a fully exercised €130 million greenshoe, according to a company announcement.
As previously reported, the company had reserved the right not to proceed with the convertibles issue and the concurrent repurchase if Bekaert did not receive repurchase offers for at least 50% of the outstanding convertibles. The company said Thursday it may decide to repurchase the outstanding bonds tendered subject to the settlement of the new bonds.
Bekaert set the repurchase price at €115,093.46 per €100,000 principal amount plus €741.80 accrued interest.
Settlement is expected to take place on June 14.
Repurchased bonds will be canceled.
Bekaert said it intends to exercise its right to redeem the outstanding convertibles not tendered in the concurrent repurchase, in accordance with their terms and conditions.
Under the note terms, the notes are callable in whole but not in part at par plus accrued interest if at least 85% of the issued bonds have been purchased or redeemed.
The company had also previously announced it was soliciting consents so that, if the 50% threshold was met but not the 85% needed to call the notes, the company would hold a meeting to align the definition of material subsidiary between the new bonds and the outstanding bonds. Because the redemption threshold was met, no meeting will be convened.
The repurchase was not open to any persons located or resident in the United States or that are otherwise U.S. persons under Regulation S.
Bekaert is a Kortrijk, Belgium-based company that specializes in steel wire transformation and coatings.
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