By Rebecca Melvin
New York, June 2 – Salzgitter Finance BV, a subsidiary of Salzgitter AG, priced €168 million seven-year 0% convertible bonds with an initial conversion premium of 45%, according to a news release.
The Regulation S offering was sold via joint bookrunners HSBC and DZ Bank Landesbank Baden-Wurttemberg and Societe Generale CIB.
Proceeds will be used for general corporate purposes.
The convertibles are non-callable for three years and then are provisionally callable subject to a 130% price hurdle.
Holders can put the bonds after five years.
The initial conversion price has been set at €47.3170, compared to the €32.6342 reference price.
Settlement will take place by June 5. Salzgitter intends to list the bonds on the open market of the Frankfurt Stock Exchange.
Salzgitter is an integrated steel producer based in Salzgitter, Germany.
| Issuer: | Salzgitter Finance BV
|
| Guarantor: | Salzgitter AG
|
| Issue: | Senior unsecured convertible bonds
|
| Amount: | €168 million
|
| Maturity: | June 5, 2022
|
| Bookrunners: | HSBC and DZ Bank Landesbank Baden-Wurttemberg and Societe Generale CIB
|
| Coupon: | 0%
|
| Price: | Par
|
| Conversion premium: | 45%
|
| Conversion price: | €47.3170
|
| Calls: | Non-callable until June 5, 2018, then provisionally callable subject to a 130% price hurdle
|
| Put: | June 5, 2020
|
| Pricing date: | June 2
|
| Settlement date: | June 5
|
| Distribution: | Regulation S
|
| Stock symbol: | Frankfurt: SZG
|
| Stock reference price: | €32.6342
|
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