By Rebecca Melvin
New York, Sept. 9 – SGL Carbon SE launched and priced €167 million of five -year convertible notes on Wednesday at par to yield 3.5% with an initial conversion premium of 30% above the volume weighted average price of shares between launch and pricing, according to a company news release.
A €17 million increase option was exercised at the time of pricing the Regulation S offering. The initial deal base size was €150 million.
Pricing came at the rich end of talk, which was for a 3.5% to 4.25% coupon and a 25% to 30% premium.
The bonds are non-callable until Sept. 30, 2018, and then they are provisionally callable if shares exceed 130% of the conversion price.
The issuer’s principal shareholders had indicated interest in subscribing for up to 55% of the bond issue.
The company plans to list the bonds on the Frankfurt Stock Exchange after the deal settles Sept. 14.
Proceeds will be used to refinance all or part of the company’s existing 3.5% convertible notes due 2016, of which €134.9 million is outstanding. Proceeds will also be for general corporate purposes.
The repurchase price for the existing bonds is 102.
Commerzbank AG and Credit Suisse Securities (Europe) Ltd. are acting as global coordinators and joint bookrunners of the offering and bond repurchase offer. Societe Generale CIB is also a joint bookrunner and deal manager, and Landesbank Baden-Wurttemberg is acting as co-lead manager.
Weisbaden, Germany-based SGL is a manufacturer of carbon, graphite and composite materials.
| Issuer: | SGL Carbon SE
|
| Issue: | Convertible unsecured notes
|
| Amount: | €167 million
|
| Maturity: | Sept. 30, 2020
|
| Bookrunners: | Commerzbank AG, Credit Suisse Securities (Europe) Ltd., Societe Generale CIB
|
| Co-lead manager: | Landesbank Baden-Wurttemberg
|
| Coupon: | 3.5%
|
| Price: | Par
|
| Yield: | 3.5%
|
| Conversion premium: | 30%
|
| Conversion price: | €18.6451
|
| Calls: | Non-callable until Sept. 30, 2018, then provisionally callable subject to a 130% price trigger
|
| Price talk: | 3.5%-4.25%, up 25%-30%
|
| Pricing date: | Sept. 9
|
| Settlement date: | Sept. 14
|
| Distribution: | Regulation S
|
| Listing: | Frankfurt Stock Exchange
|
| Stock symbol: | Xetra: SGL
|
| Stock reference price: | €14.3424
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
