By Evan Weinberger
New York, July 5 - Portugal Telecom, SGPS, SA priced €750 million in exchangeable bonds due 2014 with a coupon of 4.125% and an initial conversion premium of 37.5% Tuesday after market close. The coupon for the exchangeables came in at the middle of price talk, which was for a coupon of 3.875% to 4.375% and a 35% to 40% conversion premium.
Banco Espírito Santo de Investimento, Merrill Lynch International and Morgan Stanley are joint bookrunners of the Regulation S offering.
The bonds are issued at par and will be exchangeable into fully-paid ordinary shares of Portugal Telecom. They have an exchange price of €13.9859. They will be listed on the Luxemburg Stock Exchange and are expected to close Aug. 28.
There is a call option after three years subject to 130% hurdle.
Portugal Telecom is based in Lisbon and provides telecommunications and multimedia services in Portugal and Brazil. The company will use the proceeds for general corporate purposes.
Issuer: Portugal Telecom, SGPS, SA
Issue: Exchangeable bonds
Amount: €750 million
Maturity: 2014
Price: Par
Coupon: 4.125%
Conversion premium: 37.5%
Conversion price: €13.9859
Call: After three years, subject to 130% hurdle
| Pricing date: | July 3
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| Settlement date: | Aug. 28
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| Bookrunner: | Banco Espírito Santo de Investimento, Merrill Lynch International and Morgan Stanley
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