Advertising Company Issues Convertible Debt Securities
Press Release: Financial Services (Bermuda) Ltd. Announces CHF 750 Million Convertible Bond Issue
Financial Services (Bermuda) Ltd. has announced plans to list its CHF 750 million convertible bonds on the SWX Swiss Exchange. The bonds offer an attractive financing opportunity in the current market.
Key Details
- Issue size: CHF 750 million
- Yield: 6.25% per annum
- Conversion premium: 30% above the reference share price
- Redemption price: 105% to 118.9% of the principal at maturity
- Lock-up period: 180 days from issue date
- Joint Bookrunners: J.P. Morgan, Citigroup, and Goldman Sachs & Co. LLC
The convertible bonds provide a fixed yield of 6.25%, with the option for holders to convert into shares at a 30% premium to the current share price. This incentivises conversion if the stock price appreciates. The redemption price at maturity includes a premium above par value (105%) to compensate bondholders.
The 180-day lock-up period restricts bondholders from selling the bonds or converting to shares immediately after issuance, helping stabilize the market post-issue. The transaction is managed by the three main global investment banks acting as Joint Bookrunners, facilitating the structuring and distribution of the bonds to investors.
The bonds are guaranteed by Financial Services S.A., Chéserex, Switzerland. The securities are not registered under the United States Securities Act of 1933, and they may not be offered or sold in the United States or to US persons without registration or an applicable exemption from registration. The distribution of this press release and the offer and sale of the securities may be restricted by law in certain jurisdictions.
The bonds are zero coupon 10-year premium redemption convertible bonds, maturing in August 2013. The Shares are listed on the SWX Swiss Exchange and traded on virt-x. Enquiries and requests for additional information can be made to Credit Suisse First Boston, Goldman, Sachs & Co. Bank, and Financial Services (Bermuda) Ltd.'s group.
The payment date of the Bonds is on 26 August 2003. The bonds are convertible into registered shares of CHF 1.00 nominal value. This press release is for information purposes only and is not an offer to sell, or the solicitation on an offer to buy, any securities.
A 90-day lock up period has been agreed upon for the sale of like convertible securities, Shares, and options by the Issuer and the Guarantor. The initial conversion premium range for the Bonds is 61 to 66% to a reference price of the Shares. The proceeds of the bonds will be used outside Switzerland for general corporate purposes.
For more details, please refer to the press release available on this link.
Investors have an opportunity to participate in the CHF 750 million convertible bond issue by Financial Services (Bermuda) Ltd., which provides a fixed yield of 6.25% but allows for potential capital appreciation via conversion into shares. The issue is managed by J.P. Morgan, Citigroup, and Goldman Sachs & Co. LLC, ensuring a structured and widely distributed offering to the business community.
