"Holderbank" issues zero coupon convertible bonds

07.01.1999
 

This morning, Holderbank Overseas Finance Ltd., Bermuda, launched a CHF 400 million convertible bond issue due 2014. The bonds are guaranteed by "Holderbank" Financière Glaris Ltd.
 

The issue, which is structured as a zero coupon premium redemption bond, is being marketed to investors with a fixed yield to maturity of 1.00%, an issue price of 100%, a redemption price of 116.0969% and a conversion premium range of 28-33%. Investors may put the bonds at the end of years 3 and 8 at the bonds' accreted values to receive a yield-to-put of 1.00%. "Holderbank" may call the bonds at their accreted value at any time after the end of year 3. There is a greenshoe option of approx. CHF 50 million (representing 20'000 underlying bearer shares) to cover over-allotments. On conversion, the Issuer has the right to deliver either existing shares or the equivalent value in cash in CHF. Holderbanks' shareholders will therefore not incur dilution. The bonds are offered for subscription until 14 July 1999. Settlement will be on 28 July 1999.

Proceeds of the issue are expected to be applied to finance the call of the outstanding CHF 250 million zero-coupon 2011 convertible bond issue and to finance future activities.

Application will be made to list the bonds on the SWX Swiss Exchange.
Credit Suisse First Boston and Salomon Smith Barney International are acting as co-global coordinators for the issue.

 
Didn't find what you were looking for?

Didn't find what you were looking for?

If you are interested in content published before 2011, please contact the Corporate Communications team at LafargeHolcim.

E-Mail