By Kenneth Lim
Boston, June 18 - Australia's Western Areas NL priced A$225 million of five-year convertible unsubordinated unsecured bonds to yield 8% with an initial conversion premium of 45%, market sources said.
The convertibles were offered at par.
The deal amount includes A$25 million from an over-allotment option that was already exercised.
Macquarie Equity Capital Markets and UBS Investment Bank are the bookrunners of the Regulation S offering.
The convertibles are non-callable for the first three years, after which they may be called subject to a hurdle at 130% of the conversion price. There are no puts.
The convertibles have dividend and takeover protection.
Western Areas, a West Perth, Western Australia-based nickel mining and exploration company, did not explain the use of the proceeds from the deal.
| Issuer: | Western Areas NL
|
| Issue: | Convertible unsubordinated unsecured bonds
|
| Bookrunners: | Macquarie Equity Capital Markets and UBS Investment Bank
|
| Amount: | A$225 million, including greenshoe
|
| Greenshoe: | A$25 million, already exercised
|
| Maturity: | July 2, 2012
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion premium: | 45%
|
| Conversion price: | A$8.16
|
| Conversion ratio: | 30,637.2549
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before July 20, 2012, thereafter callable subject to hurdle at 130% of conversion price
|
| Puts: | None
|
| Pricing date: | June 18
|
| Settlement date: | June 29
|
| Distribution: | Regulation S
|
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