Chicago, Oct. 7 – Seven Group Holdings Ltd. priced a A$250 million offering of five-year notes exchangeable for ordinary shares of Boral Ltd., according to a notice.
The notes have a 4.625% coupon and an initial conversion premium of 30%.
The initial exchange premium was being talked in the 30% area. The coupon was talked at 3.875% to 4.625%.
The exchange property will initially be approximately 66.3 million Boral shares.
The reference price is the clearing price of the concurrent delta placement, 33.1 million Boral shares.
Seven Group announced it would participate in the delta placement, at least to its pro rata portion of its existing ownership interest of 69.6% in Boral. The company said it acquired an additional 3% interest in Boral shares under the customary hedging arrangements associated with the new notes.
Macquarie Bank Ltd. intends to initially make Boral shares available for borrowing to facilitate investor hedging activities.
Noteholders will be able to exchange their notes into company shares starting after one year from the settlement date to seven days before the maturity date.
There is an investor put option at the three-year point.
The company was conducting a concurrent repurchase offer for the company’s outstanding convertible notes due 2025.
The offer was significantly oversubscribed with most of the funds subscribed from new money, but also including interest from tendering noteholders of the company’s existing bonds.
The company decided to repurchase A$114.2 million of the existing bonds with the proceeds, and use the remainder to repay existing bank debt.
Merrill Lynch Equities (Australia) Ltd. is the bookrunner.
Macquarie Capital (Australia) is working as structuring adviser for the offering.
Seven Group is an Australian diversified operating and investment group with market leading businesses and investments in industrial services, oil and gas and media.
| Issuer: | Seven Group Holdings Ltd.
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| Amount: | A$250 million
|
| Issue: | Exchangeable bonds
|
| Maturity: | 2027
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| Bookrunner: | Merrill Lynch Equities (Australia) Ltd.
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| Co-managers: | Merrill Lynch Equities (Australia) and Macquarie Capital (Australia) Ltd.
|
| Coupon: | 4.625%
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| Exchange premium: | 30%
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| Exchange price: | A$3.77
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| Puts: | On three-year anniversary
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| Trade date: | Oct. 6
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| Settlement date: | Oct. 18
|
| Distribution: | Regulation S
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| Price talk: | 3.875% to 4.625%, 30% initial exchange premium
|
| Stock symbol: | ASX: BLD
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| Stock price: | A$2.90 on Oct. 6
|
| Market capitalization: | A$3.15 billion
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