By Abigail W. Adams
Portland, Me., June 6 – Swiss Re priced $500 million of six-year exchangeable senior notes on Wednesday at the cheap end of talk with a coupon of 3.25% and an initial conversion premium of 30%, according to a company new release.
Price talk had been for a coupon of 2.75% to 3.25% and an initial conversion premium of 30% to 35%.
Swiss Re will issue the notes to repackaging vehicle ELM BV which will issue its own six-year exchangeable notes secured by the notes issued by Swiss Re.
ELM will distribute the notes in accordance with Regulation S.
The notes are provisionally callable. Holders may require the company to redeem the notes upon a fundamental change.
The reference share price will be the volume-weighted average price of shares over an averaging period that will run from June 7 to June 20.
The notes may be settled with existing Swiss Re treasury shares which are subject to a floor of 50% of the reference share price.
Swiss Re will purchase call options on Swiss Re shares from hedging counterparties who are expected to enter into transactions to hedge their positions during the averaging period for the reference share price.
The ELM notes will be listed on the Open Market of the Frankfurt Stock Exchange.
Swiss Re Group is a Zurich, Switzerland-based reinsurance company.
| Issuer: | Swiss Re
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| Securities: | Exchangeable senior notes
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| Amount: | $500 million
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| Maturity: | June 13, 2024
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| Coupon: | 3.25%
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| Conversion premium: | 30%
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| Conversion price | To be determined on June 20
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| Conversion rate: | To be determined on June 20
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| Call options: | Provisionally callable
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| Put options: | Upon a fundamental change
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| Pricing date: | June 6
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| Settlement date: | June 13
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| Talk: | Coupon of 2.75% to 3.25% and an initial conversion premium of 30% to 35%
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| Distribution: | Regulation S
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| Stock symbol: | VTX: SREN
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| Stock price: | CHF 86.80
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| Market capitalization: | CHF 26.92 billion
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