By Rebecca Melvin
New York, Oct. 20 - Celesio Finance BV, a subsidiary of Celesio AG, priced €305 million of five-year convertible senior unsecured bonds on Tuesday - the upper range of €265 million to €305 million - to yield 3.75% with an initial conversion premium of 25%, according to a news release.
The bonds priced at the rich end of talk for the coupon, which was 3.75% to 4.75%, and at the talked price point for the premium, which was 25% above the volume weighted average Xetra price of the shares during launch and pricing Tuesday.
The Regulation S bonds have a $45 million greenshoe and were sold via BNP Paribas and Societe Generale Corporate & Investment Banking as joint bookrunners and lead managers.
ABN Amro, Calyon, Commerzbank, ING and UniCredit Group (Bayerische Hypo- und Vereinsbank AG) were co-bookrunners.
The deal was 10 times oversubscribed for an order book of more than €3.5 billion.
Settlement is expected by Oct. 29.
Proceeds will be used to diversify funding sources and the company's investor base and to extend its debt maturity profile. It will refinance recently announced acquisitions in Brazil and Belgium on a longer-term basis.
Celesio intends to list the bonds on the open market of the Frankfurt Stock Exchange.
Stuttgart, Germany-based Celsio is a company that offers pharmaceutical products and services.
| Issuer: | Celesio Finance BV
|
| Convertible entity: | Celesio AG
|
| Issue: | Convertible mandatory bonds
|
| Amount: | €305 million
|
| Greenshoe: | €45 million
|
| Maturity: | 2014
|
| Bookrunners: | BNP Paribas, Societe Generale Corporate & Investment Banking
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Conversion price: | €22.49
|
| Conversion premium: | 25%
|
| Price talk: | 3.75% to 4.75%, up 25%
|
| Pricing date: | Oct. 20
|
| Settlement date: | Oct. 29
|
| Distribution: | Regulation S
|
| Stock reference price: | €17.99
|
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