New York, Nov. 15 - Vivendi Universal priced €884.5 million of mandatorily convertible notes on Thursday.
The size of the deal includes the full exercise of the €114.5 million greenshoe. The deal could be increased by a further €115 million during the retail offering to individual investors in France which began on Nov. 15 and will on Nov. 19. If the full amount is sold the total size of the deal will be €1 billion.
The coupon was set at 8.25%, at the high end of talk of 7.5% to 8.25%. The conversion premium was set at 7.7% over the stock's closing price or 17% over the intra-day low, both well below talk of 21% to 26%.
Bookrunner for the offering was Deutsche Bank. BNP Paribas, Credit Suisse First Boston and SG Investment Banking were also included in the syndicate. The notes were offered to institutional investors outside the U.S., Canada and Japan.
Vivendi said the issue will "considerably improve its financial flexibility." The company noted it is still working on a new €3 billion facility and that the deadline for putting it in place has been extended to Nov. 25.
Vivendi added that it is aiming to limit the size of the facility to €1 billion in exchange for extending the maturity and removing the early repayment clause linked to asset disposals under way or scheduled.
| Issuer: | Vivendi Universal
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| Issue: | Mandatory redeemable notes
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| Amount: | €884.5 million (€770 million plus exercise of €114.5 million greenshoe)
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| Retail amount: | Possible further addition of €115.5 million
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| Maturity: | Nov. 25, 2005
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| Coupon: | 8.25%, payable one time at net present value of €2.951 on Nov. 28
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| Price: | Par of €12.71
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| Conversion premium: | 7.7% over Nov. 14 closing price of €11.80 (17% over intra-day low of €10.86)
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| Conversion ratio: | 1 (at maturity, lower if exchanged early)
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| Pricing date: | Nov. 14
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| Settlement: | Nov. 26
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| Bookrunner: | Deutsche Bank
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