By Rebecca Melvin
New York, April 26 – Abigrove Ltd. priced $200 million of 0.5% five-year convertible bonds, which are guaranteed by PAO Severstal, at par with an initial conversion premium of 17.5% on Tuesday, according to a news release.
The Regulation S deal priced at the cheap end of talk for a 0% to 0.5% coupon and 17.5% to 25% premium.
Joint bookrunners of the deal were Citigroup Global Markets Ltd., Deutsche Bank AG, London Branch, J.P. Morgan Securities plc and Societe Generale CIB.
The senior unsecured guaranteed convertibles may be cash settled and are convertible in to the Global Depositary Receipts of Severstal listed on the London Stock Exchange.
The bonds are non-callable until May 20, 2019 and then are provisionally callable if shares exceed 130% of the conversion price. Holders can put the bonds at year three. They are being issued and redeemed at par and will mature April 29, 2021.
Proceeds will be used for general corporate purposes.
Certain bookrunners, the company and/or its affiliates entered into stock lending arrangements representing about 3% of the company’s issued share capital for the purpose of facilitating investor hedging.
Severstal is applying to list the bonds on the Frankfurt Stock Exchange.
Severstal is a steel and mining company based in Cherepovets, Russia.
| Issuer: | Abigrove Ltd.
|
| Guarantor: | PAO Severstal
|
| Issue: | Senior unsecured guaranteed convertibles
|
| Amount: | $200 million
|
| Maturity: | April 29, 2021
|
| Bookrunners: | Citigroup Global Markets Ltd., Deutsche Bank AG, London Branch, J.P. Morgan Securities plc, Societe Generale CIB
|
| Coupon: | 0.5%
|
| Price: | Par
|
| Yield: | 0.5%
|
| Conversion premium: | 17.5%
|
| Conversion price: | $13.80
|
| Calls: | Non-callable until May 20, 2019, then provisionally callable at a price hurdle of 130%
|
| Puts: | At year three
|
| Price talk: | 0%-0.5%, up 17.5%-25%
|
| Stock symbol: | London: SVST
|
| Pricing date: | April 26
|
| Settlement date: | April 29
|
| Distribution | Regulation S
|
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