New York, Nov. 17 – SA Damm said it priced a €200 million offering of guaranteed bonds due 2023 exchangeable for Ebro Foods, SA stock to yield 1% with an initial conversion premium of 25%.
The deal came at the cheap end of talk that had been set at 0.5% to 1% with a conversion premium of 25% to 30%.
UBS Ltd. is bookrunner for the Regulation S sale, according to an announcement from the company.
There is a greenshoe of €50 million.
The exchangeables are being sold through subsidiary Corporacion Economica Delta, SA and guaranteed by Damm.
On conversion or at maturity, Damm can issue shares, cash or a combination, at its option.
The exchangeables will be callable after five years and 21 days subject to a 130% stock price hurdle.
The securities will be putable at par on Dec. 1, 2021.
Proceeds will be used to pay down loans within the group, and the parent company will then use the proceeds for growth, to reduce or refinance debt and for other general corporate purposes.
Damm is a brewer based in Barcelona, Spain. Ebro Foods is a maker of rice, pasta and sauces and is based in Madrid.
| Issuer: | Corporacion Economica Delta, SA
|
| Guarantor: | SA Damm
|
| Issue: | Guaranteed exchangeable bonds
|
| Underlying stock: | Ebro Foods, SA
|
| Amount: | €200 million
|
| Greenshoe: | €50 million
|
| Maturity: | Dec. 1, 2023
|
| Bookrunner: | UBS Ltd.
|
| Coupon: | 1%
|
| Price: | 100
|
| Yield: | 1%
|
| Initial exchange premium: | 25%
|
| Exchange price: | €23.7095
|
| Call: | After five years and 21 days subject to 130% hurdle
|
| Put: | At par on Dec. 1, 2021
|
| Pricing date: | Nov. 17
|
| Distribution: | Regulation S
|
| Stock price: | €18.9676
|
| Talk: | 0.5%-1%, up 25%-30%
|
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