By Rebecca Melvin
New York, Sept. 29 - Salzgitter Finance BV, a subsidiary Salzgitter AG, priced €296 million of seven-year convertible bonds late Tuesday to yield 1.125% with an initial conversion premium of 25%, according to a news release.
The Regulation S offering, which was oversubscribed several times, priced at the midpoint of talk, which was 0.625% to 1.625% for the coupon, with a premium of 25%.
Commerzbank, Deutsche Bank and UniCredit Group (Bayerische Hypo- und Vereinsbank AG) were joint bookrunners of the offering.
Holders of the bonds can put them in year five at the principal amount plus accrued interest.
Proceeds will be used for general corporate purposes and to diversify the company's funding sources.
The bonds are expected to be listed on the Open Market of the Frankfurt Stock Exchange.
Salzgitter is an integrated steel producer based in Salzgitter, Germany.
| Issuer: | Salzgitter Finance BV
|
| Issue: | Convertible senior unsecured bonds
|
| Amount: | €296 million
|
| Maturity: | Oct. 6, 2016
|
| Bookrunners: | Commerzbank, Deutsche Bank, and UniCredit Group (Bayerische Hypo- und Vereinsbank AG)
|
| Coupon: | 1.125%
|
| Price: | Par, €50,000
|
| Yield: | 1.125%
|
| Conversion premium: | 25%
|
| Conversion price: | €83.4963
|
| Put: | Oct. 6, 2014
|
| Price talk: | 0.625%-1.625%, up 25%
|
| Pricing date: | Sept. 29
|
| Settlement date: | Oct. 6
|
| Distribution: | Regulation S
|
| Stock symbol: | Frankfurt: SZG
|
| Stock reference price: | €66.7970
|
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