ACS plans €700 million five-year bonds exchangeable for shares of Iberdrola to yield 2.625%-3.375%

By Rebecca Melvin

New York, Oct. 4 - ACS Actividades de Construccion y Servicios SA said it plans to price €700 million five-year bonds exchangeable for shares of Iberdrola SA, according to a regulatory release.

The Regulation S bonds, with a €100,000 par, were talked to yield between 2.625% and 3.375% with an initial exchange premium of 28% to 35%.

Joint bookrunners of the deal are Natixis, Banco Santander, Deutsche Bank AG, London Branch, HSBC Bank plc, Society Generale CIB and Mediobanca Banca di Credito Finanziario SpA.

The bonds are non-callable until Nov. 12, 2016 and then are provisionally callable if Iberdrola shares exceed 130% of the exchange price.

There is an investor put on Oct. 22, 2016.

The bonds have takeover protection.

Proceeds will be used to cancel part of an equity swap over shares in Iberdrola entered into with Natixis and for financing ordinary activities.

Settlement is expected Oct. 22.

Madrid-based ACS is an infrastructure and civil works construction and services company.

Iberdrola is a utility located in Bilbao, Spain.

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