By Rebecca Melvin
New York, July 16 - Bong AB has priced SEK 75 million of five-year convertibles at par to yield 10% with an initial conversion premium of 53% over the pricing of its new share issue, according to a news release.
The Regulation S convertible issue was downsized earlier this month to SEK 75 million from an initially talked SEK 200 million.
Concurrently with the convertible bond issue, Bong has priced a rights issue of about SEK 125 million of shares at SEK 1.80 per share. One existing share entitles to subscription for four new shares.
The company has also priced offset issues of SEK 100 million of shares for Holdham SA and SEK 50 million of shares to its two largest banks at SEK 2.16 per share. The offset issues are aimed at settling existing convertible debt and shareholder loans.
Proceeds of the new issues will be used for partial repayment of current bank loans.
ABG Sundal Collier AB is a financial adviser to the company on the deals, and Advokatfirman Vinge is legal adviser.
Stockholm-based Bong is an envelope and packaging products company.
| Issuer: | Bong AB
|
| Issue: | Convertible bonds
|
| Amount: | SEK 75 million
|
| Maturity: | June 27, 2018
|
| Concurrent offerings: | About SEK 125 million shares, or 69,923,980 shares at SEK 1.80 each; SEK 150 million offset issues at SEK 2.16 per share
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion premium: | 53%
|
| Conversion price: | SEK 2.75 per share
|
| Distribution: | Regulation S
|
| Pricing date: | July 15
|
| Stock symbol: | Stockholm: BONG
|
| Stock price: | SEK 4.28 as of close July 15
|
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