By Rebecca Melvin
New York, Sept. 15 - Steinhoff Finance Holdings GmbH, a subsidiary of Steinhoff International Holdings Ltd., priced €345 million of 5% convertible bonds due May 2016 at par to yield 6.5% with an initial conversion premium of 35%, according to a news release.
Initially the deal size was talked at €300 million.
The Regulation S bonds came at the rich end of price talk for the premium, which was 30% to 35%, and at the talked price point for the coupon. The yield to maturity per year is 6.125%, which was at the rich end of 6.125% to 6.875% talk.
There is a greenshoe for a further €45 million, which was upsized from €30 million.
Citigroup Global Markets Ltd. and BNP Paribas SA are the joint bookrunners, with Credit Suisse and Standard Bank as co-bookrunners.
The initial conversion price has been set at ZAR 25.758 per ordinary share.
The bonds will be redeemed at between 107.51% and 112.76% of their principal amount on maturity.
The bonds will be non-callable for until Dec. 6, 2014 and then provisionally callable at a price hurdle of 140%.
Proceeds will be used for general corporate purposes, including extending its debt maturity profile, and providing financial flexibility for strategic initiatives.
Application will be made to include the bonds for trading on the Open Market of the Frankfurt Stock Exchange.
Steinhoff is a South Africa-based manufacturer and distributor of household goods.
| Issuer: | Steinhoff Finance Holdings GmbH
|
| Guarantor: | Stenhoff International Holdings Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | €345 million, upsized from €300 million
|
| Greenshoe: | €45 million, upsized from €30 million
|
| Maturity: | May 22, 2016
|
| Bookrunners: | Citigroup Capital Markets Ltd., BNP Paribas SA
|
| Co-managers: | Credit Suisse, Standard Bank
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield to maturity: | 6.5%
|
| Conversion premium: | 35%
|
| Price talk: | 5% coupon; 6.125%-6.875% yield to maturity; up 30%-35%
|
| Pricing date: | Sept. 15
|
| Settlement date: | Sept. 22
|
| Distribution: | Regulation S
|
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