Market Tech offers £112.5 million 2% five-year convertibles, up 16.5%

By Rebecca Melvin

New York, March 24 – Market Tech Holdings Ltd. plans to price £112.5 million of five-year convertible senior bonds later Tuesday at par with a 2% coupon and a 16.5% initial conversion premium, according to a news release.

Citwax Investments Ltd., the company's majority shareholder, has indicated an interest in subscribing for up to 30% of the Regulation S offering.

UBS Investment Bank is acting as sole global Coordinator and joint bookrunner of the deal with Joh. Berenberg, Gossler & Co. KG and Jefferies International Ltd. also acting as joint bookrunners. Barak Capital Underwriting Ltd. and Shore Capital Stockbrokers Ltd. are acting as co-bookrunners.

Market Tech plans to use proceeds for its recently announced real-estate acquisitions of the Interchange Building and Camden Wharf and the e-commerce acquisition of Glispa.

The bonds mature March 31, 2020. They will be redeemed at 109.5% to 112.4% of par, reflecting a yield to maturity of 3.75% to 4.25% per year.

The bonds are non-callable for three years and then are provisionally callable if shares exceed 130% of the conversion price. There is a put at year three.

The initial conversion price is expected to be set at £3.00 per share.

Application is expected to be made to admit the bonds to trading on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange or another internationally recognized stock exchange.

Market Tech is a Guernsey-based real estate and e-commerce company.

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