By Rebecca Melvin
New York, Oct. 4 - ACS Actividades Finance BV, a subsidiary of ACS Actividades de Construccion y Servicios SA, priced an upsized €721.1 million five-year bonds exchangeable for shares of Iberdrola SA at par and with a 2.625% yield and a 35% initial exchange premium, according to a regulatory release.
The Regulation S bonds, with a €100,000 par, came at the rich end of talk, which was for a 2.625% to 3.375% coupon and a 28% to 35% premium.
The initial exchange price is €5.7688 per share.
The bond issue was oversubscribed by about five times, the release said.
Joint bookrunners were Natixis, Banco Santander, Deutsche Bank AG, London Branch, HSBC Bank plc, Society Generale CIB and Mediobanca Banca di Credito Finanziario SpA.
The bonds are non-callable until Nov. 12, 2016 and then are provisionally callable if Iberdrola shares exceed 130% of the exchange price. There is an investor put on Oct. 22, 2016.
The bonds have takeover protection, and settlement is expected Oct. 22.
Proceeds will be used to cancel part of an equity swap over shares in Iberdrola entered into with Natixis and for financing ordinary activities.
Madrid-based ACS is an infrastructure and civil works construction and services company.
Iberdrola is a utility located in Bilbao, Spain.
| Issuer: | ACS Actividades Finance BV
|
| Guarantor: | ACS Actividades de Construccion y Servicios SA
|
| Issue: | Exchangeable bonds
|
| Exchange entity: | Iberdrola SA
|
| Amount: | €721.1 million, upsized from €700 million
|
| Maturity: | Oct. 22, 2018
|
| Joint bookrunners: | Natixis, Banco Santander, Deutsche Bank AG, London Branch, HSBC Bank plc, Society Generale CIB and Mediobanca Banca di Credito Finanziario SpA
|
| Coupon: | 2.625%
|
| Price: | Par
|
| Yield: | 2.625%
|
| Exchange premium: | 35%
|
| Exchange price: | €5.7688
|
| Calls: | Non-callable until Nov. 12, 2016, then provisionally callable at 130% price hurdle
|
| Puts: | Oct. 22, 2016
|
| Takeover protection: | Yes
|
| Price talk: | 2.625%-3.375%, up 28%-35%
|
| Pricing date: | Oct. 4
|
| Settlement date: | Oct. 22
|
| Stock symbol: | Madrid: ACS
|
| Stock price: | €24.09 as of close Oct. 4
|
| Distribution: | Regulation S
|
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