By Stephanie N. Rotondo
Seattle, June 28 – Korian priced €240 million of 2.5% undated unsecured bonds convertible into existing ordinary shares or exchangeable for new shares in the Odirnane structure, the company said in a press release on Wednesday.
The issue came at par, with an initial conversion price of €40.21, a 35% initial conversion premium over the reference share price.
The deal was upsized from €200 million and came at the rich end of the 2.5% to 3.25% yield talk and the 30% to 35% premium talk.
Crédit Agricole CIB was the global coordinator. The firm also acted as joint lead manager and joint bookrunner, along with Société Générale Corporate & Investment Banking.
Conversions will be settled in cash, stock or a combination of the two, at the company’s option. Holders can convert the bonds at any time between the issue date and the 18th trading day preceding Jan. 1, 2023.
The coupon is fixed until Dec. 31, 2022. After that, the rate begins to float at Euribor plus 900 basis points.
In the event of a change of control, the rate will increase by 500 bps.
The convertible debt is redeemable subject to a 130% price hurdle starting Jan 29, 2021 and then there is a hard call on Jan. 1, 2023 and any subsequent interest payment date. The bonds can also be redeemed upon a change of control or if less than 10% of the bonds are outstanding.
Proceeds will be used for general corporate purposes and to strengthen the company’s balance sheet.
Korian is a Paris-based care and support services provider for the elderly.
| Issuer: | Korian
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| Securities: | Odirnane unsecured bonds convertible into existing shares or exchangeable for new shares
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| Amount: | €240 million
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| Maturity: | Perpetual
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| Bookrunners: | Crédit Agricole CIB and Société Générale Corporate & Investment Banking
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| Coupon: | Fixed at 2.5% until Dec. 31, 2022, then floating at Euribor plus 900 bps
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| Step-up rate: | Coupon increases by 500 bps upon a change of control
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| Yield: | 2.5%
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| Provisional call: | From Jan. 29, 2021 subject to 130% stock price hurdle
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| Call options: | On Jan. 1, 2023 and subsequent interest payment dates
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| Initial conversion price: | €40.21
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| Initial conversion premium: | 35%
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| Pricing date: | June 28
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| Settlement date: | July 3
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| Talk: | 2.5% to 3.25%, up 30% to 35%
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| Stock symbol: | Paris: KORI
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| Stock price: | €30.30 as of June 28 close
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| Market capitalization: | €2.429 billion
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