By Rebecca Melvin
New York, Dec. 9 - Finland's Talvivaara Mining Co. plc priced €200 million of 4% convertible senior bonds due 2015 at par on Thursday to yield 6.5% with an initial conversion premium of 30%, according to a release.
The Regulation S offering came at the cheap end of yield talk, which was 5.5% to 6.5%, and at the talked price point for the premium. The bonds will be redeemed at 114.5% of the principal amount.
The bonds have a €25 million greenshoe and were sold via joint bookrunners Bank of America Merrill Lynch and JPMorgan.
The initial conversion price was set at €8.3435 of Talvivaara shares traded on the London Stock Exchange. Currency exchange is set at a fixed rate of pounds to euros of 1.1912.
The bonds will become convertible into Talvivaara shares subject to approval by shareholders at a meeting to take place by Feb. 18, 2011.
If the shareholder resolution is not passed, Talvivaara has the option to call the bonds at the greater of 102% of the principal and accrued interest or 102% of the fair value of the bonds plus accrued interest.
If less than 15% of the bonds remain outstanding, Talvivaara has the right to redeem the remaining outstanding issuance.
Proceeds are earmarked for general corporate purposes, including developing operations as well as refinancing existing debt.
Based in Espoo, Finland, the company mines sulphide nickel from the Talvivaara mine.
| Issuer: | Talvivaara Mining Co. plc
|
| Issue: | Convertible senior bonds
|
| Amount: | €200 million
|
| Greenshoe: | €25 million
|
| Maturity: | Dec. 29, 2015
|
| Bookrunners: | Bank of America Merrill Lynch, JPMorgan
|
| Coupon: | 4%
|
| Issue price: | Par
|
| Redemption price: | 114% of principal amount
|
| Yield: | 6.5%
|
| Conversion premium: | 30%
|
| Conversion price: | €8.3435
|
| Pricing date: | Dec. 9
|
| Settlement date: | Dec. 16
|
| Price talk: | 5.5%-6.5% yield, up 30%
|
| Distribution: | Regulation S
|
| Stock symbol: | London: TALV
|
| Market capitalization: | £1.32 billion
|
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