By Rebecca Melvin
New York, Feb. 25 - Solidium Oy priced €350 million of 4.5-year senior bonds exchangeable into shares of Sampo plc to yield 0% with an initial conversion premium of 35%, according to a news release.
Solidium also placed €450 million of Sampo shares at €35.65 per share for total proceeds of €800 million from the two transactions.
Merrill Lynch International was sole bookrunner of the bond offering while Merrill Lynch International was the bookrunner and Finland's Nordea Markets was co-bookrunner of the equity offering.
The Regulation S bonds can be net share settled and Solidium will retain the dividend income from the underlying A shares. The exchange property will be adjusted only if the annual dividend income exceeds €1.65 per A share in 2014, €1.80 per A share in 2015 and €1.95 per A share in later years.
Solidium said the financings will further diversity its debt maturity profile. It will use proceeds to finance equity investments.
Solidium is a Finnish state-owned investment company and Sampo is an insurance company based in Helsinki, Finand.
| Issuer: | Solidium Oy
|
| Exchange entity: | Sampo plc
|
| Issue: | Senior unsecured exchangeable bonds
|
| Amount: | €350 million
|
| Maturity: | August 2018
|
| Concurrent offering: | €450 million of Sampo A shares at €35.65 each
|
| Bookrunner: | Merrill Lynch International
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: 35%
|
| Conversion price: | €48.1275
|
| Net share settlement: | Yes
|
| Stock reference price: | €35.65
|
| Distribution: | Regulation S
|
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