New York, Dec. 6 - Corus Group plc said it priced its offering of senior convertible guaranteed bonds, increasing the offering to €275 million from the planned size of €250 million. It also said the bookrunner Credit Suisse First Boston exercised the over-allotment option in full, adding a further €32 million for a total size of €307 million.
The convertibles priced richer than talk, with a yield of 4.75%, at the low end of talk of 4.75% to 5.25%, and an initial conversion premium of 30%, above talk of 23% to 28%. Corus said the offering, which priced after the market close Tuesday, was "heavily oversubscribed."
When converted, the company said it will issue an additional 234,351,152 shares.
Corus, an Anglo-Dutch steelmaker, offered the bonds to institutional investors outside the U.S., Canada and Japan.
Proceeds from the sale will be used to refinance bank borrowings and for general corporate purposes.
In addition to bookrunner Credit Suisse First Boston, co-lead managers were ABN Amro Cazenove, HBSC and KBC.
| Issuer: | Corus Group plc
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| Amount: | €307 million (€275 million plus €32 million greenshoe)
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| Maturity: | Jan. 11, 2007
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| Coupon: | 3%
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| Price: | Par
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| Yield: | 4.75%
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| Payment at maturity: | 109.62
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| Call: | Jan. 11, 2005 onwards at accreted principal plus accrued interest
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| contingent on shares trading at 130% of conversion price for
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| 20 out of 30 consecutive trading days.
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| Conversion premium: | 30% over weighted average share price on Dec. 4
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| Conversion price: | €1.31 (equivalent to £0.8204)
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| Settlement: | Jan. 11, 2002
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| End
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