By Abigail W. Adams
Portland, Me., Jan. 22 – Sika AG priced CHF 1.3 billion of three-year mandatory convertible notes on Tuesday at par at the rich end of talk with a coupon of 3.75% and an initial conversion premium of 12.5%, according to a company news release.
Price talk had been for a coupon of 3.75% to 4% and an initial conversion premium of 12.5% to 15%.
UBS is global coordinator and joint bookrunner for the Regulation S deal. Citigroup is also a joint bookrunner.
The reference share price of CHF 130 is equal to the share price of a concurrent placement of existing shares from hedging transactions.
Sika may elect at its discretion to defer payment of interest on the notes with interest payments in arrears to be satisfied at the option of Sika or mandatorily upon the occurrence of certain events, according to the press release.
Proceeds will be used to fund the acquisition of Parex and for general corporate purposes.
Sika is a Baar, Switzerland-based specialty chemicals company.
| Issuer: | Sika AG
|
| Securities: | Mandatory convertible notes
|
| Amount: | CHF 1.3 billion
|
| Maturity: | 2022
|
| Bookrunners: | UBS and Citigroup
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Conversion premium: | 12.5%
|
| Conversion price: | Minimum of CHF 130 and maximum of CHF 146.25
|
| Pricing date: | Jan. 22
|
| Settlement date: | Jan. 30
|
| Distribution: | Regulation S
|
| Talk: | Coupon of 3.75% to 4% and an initial conversion premium of 12.5% to 15%
|
| Stock symbol: | Swiss: SIKA
|
| Stock reference price: | CHF 130
|
| Market capitalization: | CHF 19.14 billion
|
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