By Rebecca Melvin
New York, Feb. 10 - Siemens Financieringsmaatschappij NV, a unit of Siemens AG, priced $3 billion of bonds with warrants at par and in two equal tranches with maturities of 5.5 years and 7.5 years, syndicate sources said.
The shorter-term bonds bear a coupon of 1.05%, while the longer bonds' coupon is 1.65%, with an initial warrant exercise premium of 37.5% for both tranches.
The bonds, with a $250,000 par, priced on the cheap end of talk, which was 0.55% to 1.05% for the shorter paper and 1.15% to 1.65% for the longer paper, with initial conversion premium of 37.5% to 42.5%.
There was no increase option for the offering, according to a syndicate source.
The warrant exercise price is €104.0018 per share. At issuance, holders of one warrant are entitled to receive 1,806.1496 Siemens shares against payment of about €188,000, based on exchange rates.
The warrants have option rights on about 21.7 million Siemens shares.
The Regulation S securities were sold via bookrunners Barclays Capital, Credit Suisse Securities (Europe) Ltd., Deutsche Bank AG, and J.P. Morgan Securities Ltd.
Proceeds will be used for general corporate purposes and to support financial flexibility, including refinancing. Siemens redeemed €2.2 billion of bonds in the first quarter of this year, and $1.3 billion of bonds mature in the second quarter, according to a news release.
Settlement is set for Feb. 16.
After issuance, the warrants can be detached from the bonds. The bond with warrant units, the bonds detached from warrants and the warrants detached will be listed on the open market segment of the Frankfurt Stock Exchange.
The deal was touted as the largest issue by a European corporate in this market segment in the past 10 years, according to a Siemens release.
Siemens is a Munich-based conglomerate.
| Issuer: | Siemens Financieringsmaatschappij NV
|
| Guarantor: | Siemens AG
|
| Issue: | Bonds with warrants
|
| Amount | $3 billion
|
| Price: | Par, $250,000
|
| Warrant exercise price: | €104.0018 per share
|
| Exercise premium: | 37.5%
|
| Ratio: | 1,806.1496 Siemens shares against payment of about €188,000.
|
| Joint bookrunners: | Barclays Capital, Credit Suisse Securities (Europe) Ltd., Deutsche Bank AG, J.P. Morgan Securities Ltd.
|
| Distribution: | Regulation S
|
| Settlement date: | Feb. 16
|
|
|
| 5.5-year maturity
|
| Amount: | $1.5 billion
|
| Maturity: | Aug. 16, 2017
|
| Coupon: | 1.05%
|
| Price talk: | 0.55% to 1.05%
|
|
|
| 7.5-year maturity
|
| Amount: | $1.5 billion
|
| Maturity: | Aug. 16, 2019
|
| Coupon: | 1.65%
|
| Price talk: | 1.15% to 1.65%
|
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