By Rebecca Melvin
New York, March 21 - Solidium Oy priced €600 million of 3.5-year senior bonds exchangeable into shares of TeliaSonera AB at par to yield 0.5% with an initial conversion premium of 27.5%, according to a news release Wednesday.
Solidium also placed €451 million of TeliaSonera shares for total proceeds of €1.05 billion that Solidium will receive.
The Regulation S bond deal, which was expected to be between €450 million to €600 million in size, came at the rich end of talk, which was for a 0.5% to 0.95% coupon and a 20% to 27.5% premium.
Goldman Sachs International was the bookrunner.
The bonds have a par of €100,000 and are non-callable until Oct. 20, 2014 and then provisionally callable subject to the shares trading at a price hurdle of 120%.
The securities have a change-of-control put and dividend protection for cash dividends above SEK 2.85 per share.
Proceeds will be used to finance equity investments, to further diversity its investment portfolio and to improve financial flexibility.
The bonds are intended to be listed on the open market segment of the Frankfurt Stock Exchange.
Solidium is a Finnish state owned investment company, and TeliaSonera is a Swedish mobile network and broadband services provider and is a mobile operator in Finland.
| Issuer: | Solidium Oy
|
| Exchange entity: | TeliaSonera AB
|
| Issue: | Senior unsecured exchangeable bonds
|
| Amount: | €600 million
|
| Maturity: | Sept. 29, 2015
|
| Concurrent offering: | €451 million of TeliaSonera shares at SEK 45.20 each
|
| Bookrunner: | Goldman Sachs International
|
| Coupon: | 0.5%
|
| Price: | Par, €100,000
|
| Yield: | 0.5%
|
| Conversion premium: | 27.5%
|
| Conversion price: | SEK 57.63, or €6.46
|
| Price talk: | 0.5%-0.95%, up 20%-27.5%
|
| Calls: | Non-callable until Oct. 20, 2014, then provisionally callable at a price hurdle of 120%
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes, for cash dividends above SEK 2.85 per share
|
| Pricing date: | March 21
|
| Settlement date: | March 29
|
| Stock reference price: | SEK 45.20
|
| Distribution: | Regulation S
|
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