New York, June 3 Eurosic SA announced a 302.5 million offering of six-year subordinated convertible bonds in the OSRA structure with a 4.59% yield.
The bonds will pay a coupon of 3% until June 29, 2018 and then 4.5% until maturity.
Eurosic will sell the securities at par of 35.75.
The company may convert the bonds into stock at any time at the rate of 0.6 shares each or repay them in cash at 106% of par.
Natixis is global coordinator and bookrunner with BNP Paribas also a bookrunner.
The subscription period will run from June 5 through June 17.
Existing shareholders will have preferential subscription rights for the new bonds at the rate of one subscription right per share held at the end of June 4. For every seven subscription rights, two convertibles can be purchased.
OSRA said its four principal shareholders, Groupe Batipart, SGAM Covea, Groupe Credit Agricole Assurances et ACM Vie Mutuelle, have agreed to subscribe to 302.3 million, of which 38.0 million is on a reducible basis.
Proceeds from the bonds will be used to increase the companys capital and to allow it to finance new investment opportunities while lowering its leverage.
Eurosic, noting current favorable conditions in the financial markets, said it believes there will be investment opportunities in the years to come and wants to be financially prepared while maintaining an adequate margin under its bank covenants.
Eurosic is a Paris-based company that invests in real estate, primarily in office buildings in Paris and major regional cities.
| Issuer: | Eurosic SA
|
| Issue: | OSRA subordinated convertible bonds
|
| Amount: | 302.5 million
|
| Maturity: | June 29, 2021
|
| Bookrunner: | Natixis (global coordinator) and BNP Paribas
|
| Coupon: | 3% until June 29, 2018, then 4.5% until maturity
|
| Price: | 35.75
|
| Payment at maturity: | 0.6 shares per bond or 106% of par in cash, or a combination
|
| Yield: | 4.59%
|
| Call: | At any time, forced conversion into stock at the rate of 0.6 shares per bond or in cash at 106% of par plus accrued interest
|
| Stock price: | 40.65 at close on June 1
|
| Subscription period: | June 5 to June 17
|
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