Korian talks €280 million undated convertible bonds to yield 1.375%-1.875%, up 30%-35%

By Abigail W. Adams

Portland, Me., Sept. 1 – Korian plans to price €280 million in undated convertible bonds with price talk for a coupon of 1.375% to 1.875% and an initial conversion premium of 30% to 35%, according to a company news release.

BNP Paribas and Credit Agricole CIB are joint global coordinators and bookrunners for the offering, which is being marketed to qualified institutional buyers in accordance with the French Monetary and Financial Code.

There is a greenshoe of €50 million.

Goldman Sachs Bank Europe SE and J.P. Morgan AG are also joint bookrunners.

The convertible bonds will have a fixed coupon until Sept. 8, 2026 and will then bear interest at a rate of the six-month Euribor plus 900 basis points.

Interest payments may be suspended if no dividend is paid on Korian shares.

In the event of a change of control, the fixed- or floating-rate coupon will be increased by 500 bps.

The bonds are non-callable until Sept. 8, 2024 except upon a change of control. They become callable subject to a 130% hurdle from Sept. 8, 2024 to Sept. 8, 2026.

The convertibles become callable on Sept. 8, 2026 and on each subsequent interest payment date.

Proceeds will be used to finance the repurchase of the company’s undated convertible bonds issued in 2017 and 2018 and for general corporate purposes.

Korian is a Paris-based operator of nursing homes.

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