By Rebecca Melvin
New York, Jan. 7 - Swiss Prime Site AG priced CHF 260 million of five-year convertible bonds Thursday at par to yield 1.875% with a 22.5% initial conversion premium to the VWAP of its shares on the SIX Swiss Exchange between launch and pricing, according to a news release.
There is an over-allotment option for an additional CHF 40 million of bonds.
The offering had been talked at CHF 220 million to CHF 300 million in size, which included an increase option that was exercised in full amid strong demand.
The bonds priced near the cheap end of talk for the coupon, which was 1.75% to 2.5%, and at the midpoint of talk for the premium, which was 20% to 25%.
The Regulation S offering consists of a public offering in Switzerland and private placements in other jurisdictions. Credit Suisse and UBS were joint bookrunners, with Credit Suisse acting as global coordinator.
Proceeds will be used to refinance Swiss Prime Site's existing convertible bonds due Feb. 3, 2010, to increase financial flexibility and for general corporate purposes.
The bonds are non-callable for three years and then provisionally callable at par plus accrued interest if the closing price of the shares is 130% of the conversion price on at least 20 out of 30 consecutive trading days. They are also callable if less than 15% principal amount of the bonds are outstanding.
Application for provisional admission to trading will be made on the SIX Swiss Exchange starting Jan. 15.
Olten, Switzerland-based Swiss Prime Site is a real estate investment company, with a portfolio of about CHF 8 billion and a market capitalization of about CHF 3.2 billion.
| Issuer: | Swiss Prime Site AG
|
| Issue: | Convertible bonds
|
| Amount: | CHF 260 million
|
| Greenshoe: | CHF 40 million
|
| Maturity: | 2015
|
| Bookrunners: | Credit Suisse, UBS
|
| Coupon: | 1.875%
|
| Price: | Par
|
| Yield: | 1.875%
|
| Conversion premium: | 22.5%
|
| Conversion price: | CHF 71.89
|
| Price talk: | 1.75%-2.5%, up 20%-25%
|
| Calls: | Non-callable for three years, then provisionally callable at 130%
|
| Distribution: | Regulation S
|
| Pricing date: | Jan. 7
|
| Settlement date: | Jan. 15
|
| Market capitalization: | About CHF 3.2 billion
|
| Stock reference: | CHF 59 on the SIX Swiss Exchange
|
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