By Marisa Wong
Madison, Wis., Nov. 13 - Swiss Life Holding AG announced it placed CHF 500 million of 0% senior convertible bonds due 2020 to domestic and international institutional investors in an oversubscribed offering.
The bonds were priced at par.
The conversion price has been set at CHF 243.97, which represents a 31% premium to the volume-weighted average price of the company's stock on Wednesday between the time the deal was announced and priced.
According to an earlier announcement, the company planned to issue up to CHF 500 million of bonds convertible into 2 million to 2.1 million shares of the company's stock. The bonds were expected to carry a coupon of 0% to 0.25%, and the conversion premium was expected to be 27% to 35%.
Deutsche Bank and UBS Investment Bank are the joint bookrunners for the Regulation S deal.
According to the news release announcing pricing, the bonds have been provisionally allocated to investors who participated in Wednesday's bookbuilding, subject to a clawback.
Existing shareholders will be granted advance subscription rights to subscribe for the newly issued bonds in proportion to their current shareholding, with each shareholder having the right to purchase one bond at par of CHF 5,000 for every 320 shares held on Nov. 12. Advance subscription rights can be exercised by existing Swiss Life shareholders during the rights exercise period starting Nov. 18 and ending 6 a.m. ET on Nov. 22.
Bonds for which advance subscription rights have been validly exercised will be deducted from the provisional allocation to investors who participated in Wednesday's bookbuilding. Definitive allocations are expected to be announced on Nov. 25.
The new bonds will be convertible into 2 million registered shares of the company's stock, representing 6.4% of the current outstanding share capital, the release noted.
Swiss Life said it intends to apply for the bonds to be admitted listed on the SIX Swiss Exchange with trading expected to start on Nov. 25.
Settlement of the bonds is slated for Dec. 2.
Proceeds will be used for general corporate purposes.
Swiss Life is an insurance company based in Zurich.
| Issuer: | Swiss Life Holding AG
|
| Issue: | Senior convertible bonds
|
| Amount: | CHF 500 million
|
| Maturity: | Dec. 2, 2020
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: | 31%
|
| Conversion price: | CHF 243.97
|
| Bookrunners: | Deutsche Bank and UBS Investment Bank
|
| Distribution: | Regulation S
|
| Pricing date: | Nov. 13
|
| Settlement date: | Dec. 2
|
| Stock symbol: | SIX Swiss: SLHN
|
| Stock price: | CHF 189.00 at close Nov. 12
|
| Market capitalization: | CHF 5.99 billion
|
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