3 December 1998: The Belgian glass group Glaverbel“s recent convertible bond issue, lead-managed by Deutsche Bank, was almost three times oversubscribed, according to a company press release.
The pr…
3 December 1998: The Belgian glass group Glaverbel“s recent convertible bond issue, lead-managed by Deutsche Bank, was almost three times oversubscribed, according to a company press release. The proceeds of the issue, amounting to DM 175.8 million (BFr 3.6 billion), will be used to partially refinance the US$ 333 million (BFr 12 billion) acquisition of the European flat glass activities of PPG Industries Inc., which was completed in August 1998. The bonds will mature in 2018 with put options every two years from year 8 at a value accreted to provide investors a yield to put of 4.25%. The bonds bear a 1.625% coupon on the nominal value, corresponding to approximately 2.5% on the issue price and a yield to maturity of 4.25%. The difference between the yield to maturity and the coupon is compensated through an issue at 65.1% of the nominal value of approximately DM 270 million. The bonds are convertible into Glaverbel shares at an initial premium of 24.5% to the closing price of BFr 4,295 on 26 November 1998, corresponding to an initial conversion price of BFr 5,347. Upon conversion of the bonds, Glaverbel intends to deliver its 678,088 treasury shares (approximately 9.6% of the outstanding shares), acquired by the Group in 1996.