Stobart talks £57.3 million five-year exchangeable bonds to yield 2.25%-2.75%, up 25%-35%

By Abigail W. Adams

Portland, Me., May 2 – Stobart Group Ltd. plans to price £57.3 million of five-year bonds exchangeable into shares of Eddie Stobart Logistics plc on Friday with talk for a coupon of 2.25% to 2.75% and an initial conversion premium of 25% to 35%, according to a company news release.

The bonds will be issued by subsidiary Stobart Finance plc.

Stifel Nicolaus Europe Ltd. is the bookrunner for the Regulation S offering.

The bonds are non-callable for three years and then subject to a 130% hurdle or are callable at any time if 85% of the principal amount have been retired.

The bonds may be settled in cash, shares or a combination of both.

The company will make shares underlying the bonds available to bondholders through a stock lending arrangement, according to the news release.

The bonds will be listed for trade on the open market of the Frankfurt stock exchange.

Proceeds will be used to support the company’s growth plans in aviation and energy.

Stobart Group is a U.K.-based infrastructure and support services company.

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