By Rebecca Melvin
New York, June 26 – STMicroelectronics NV priced $1 billion of five- and seven-year convertible bonds on Thursday, including $600 million of 0% five-year convertibles and $400 million of 1% seven-year convertibles, according to a news release.
The five-year tranche of the Regulation S convertibles has a 30% initial conversion premium, and the seven-year tranche has a 31% premium.
Pricing for the shorter-dated bonds came as expected at 0% and at the cheap end of 30% to 40% premium talk.
Pricing of the longer-dated notes came at the cheap end of talk for a yield 0.5% to 1% and an initial conversion premium of 31% to 41%.
JPMorgan, BNP Paribas, Banca IMI, Morgan Stanley, Societe Generale CIB and UniCredit are acting as joint bookrunners of the offering.
The company also announced a share buyback program for a maximum of 20 million shares, representing about 2.2% of the company’s share capital.
The price paid for any ordinary shares purchased will be subject to a minimum of €1.04 and a maximum of 110% of the average of the highest price at which the ordinary shares are quoted on each of the five trading days prior to the purchase on the Euronext Paris, the New York Stock Exchange or Borsa Italiana.
Proceeds of the bond offering are earmarked for general corporate purposes.
Application will be made to list the bonds on the Open Market of the Frankfurt Stock Exchange.
STMicroelectronics is a semiconductor company based in Geneva.
| Issuer: | STMicroelectronics NV
|
| Issue: | Convertible notes
|
| Amount: | $1 billion
|
| Bookrunners: | JPMorgan, BNP Paribas, Banca IMI, Morgan Stanley, Societe Generale CIB, UniCredit
|
| Pricing date: | June 26
|
| Settlement date: | July 3
|
| Distribution: | Regulation S
|
| Stock symbol: | Euronext: STM
|
| Stock price: | $9.02 at close June 26
|
| Market capitalization: | $8.03 billion
|
|
|
| 2019 notes
|
| Amount: | $600 million
|
| Maturity: | 2019
|
| Coupon: | 0%
|
| Conversion premium: | 30%
|
| Initial conversion price: | $11.9791
|
| Price talk: | 0%, up 30%-40%
|
|
|
| 2021 notes
|
| Amount: | $400 million
|
| Maturity: | 2021
|
| Coupon: | 1%
|
| Conversion premium: | 31%
|
| Conversion price: | $12.0712
|
| Price talk: | 0.5%-1%, up 31%-41%
|
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