By Kenneth Lim
Boston, July 29 - Bank of Cyprus PCL priced its oversubscribed €573.41 million offering of 10-year convertible bonds at the cheap end of talk with a strike price of €1.00, the bank said in a news release.
Price talk on the strike price was at €1.00 to €1.01. The price was determined by bookbuilding.
The convertibles will yield 7.5% in the first year. The bonds will bear interest thereafter at a floating rate equal to six-month Euribor plus 100 basis points for the next four years and equal to six-month Euribor plus 300 bps for the last five years.
As previously reported, the bonds are non-callable for five years, and the conversion price is €10.50.
Cyprus Investment and Securities Corp. Ltd. was lead bookrunner for the offering, which is expected to be listed on the Cyprus Stock Exchange and the Athens Exchange.
Proceeds will be used to strengthen the Bank of Cyprus Group's capital adequacy. Based in Nicosia, Cyprus, the Bank of Cyprus is a banking and financial services group.
| Issuer: | Bank of Cyprus PCL
|
| Issue: | Convertible bonds
|
| Bookrunner: | Cyprus Investment and Securities Corp. Ltd.
|
| Amount: | €573.41 million
|
| Maturity: | 2018
|
| Coupon: | 7.5% in the first year; six-month Euribor plus 100 bps in years two to five; six-month Euribor plus 300 bps in years six to 10
|
| Conversion price: | €10.50
|
| Strike price: | €1.00
|
| Call protection: | Non-callable before 2013
|
| Price talk: | Strike price of €1.00-€1.01
|
| Settlement date: | Aug. 8
|
| Distribution: | Regulation S
|
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