The double placement of stocks and bonds takes shape Fiat Chrysler Automobiles on Wall Street. The group announced in a statement that the 87 million ordinary shares of the offer will be sold at a price of dollars 11 for each title (approximately 8,8 euros). An option will also be granted to the banks responsible for the placement, which will be able to purchase up to a further 13 million ordinary shares from FCA.
After the announcement of the news, the FCA share dropped by more than five percentage points on the Milan Stock Exchange, to 9,285 euros, the worst fall of the Ftse Mib. Consob monitors the performance of the shares, after the fluctuations that began yesterday.
as to coupon of the convertible bond from 2,5 billion dollars, will be of 7,875% per year, payable on December 15, 2015 and 2016, and, at the group's option, may be paid in FCA ordinary shares at the mandatory conversion rate. The placement banks, the note recalls, have the option to purchase an additional notional amount of up to $375 million of the loan.
"The bond with mandatory conversion will be issued at 100% of the notional amount - writes FCA - and will be compulsorily converted into FCA ordinary shares on 15 December 2016, except in cases of early conversion at the discretion of the holder or FCA or following of the occurrence of specific events according to the relative terms”.
The major banks are involved in the maxi-placement: for Italy, Unicredit Capital Markets, Mediobanca and Banca IMI participate.
Exor, the Agnelli holding company, the reference shareholder of the group, "has agreed to purchase for investment purposes a total notional amount of $886 million of the bond issue to mandatory conversion - continues the note - in order to preserve its stake equal to approximately 30 percent (fully diluted) of the ordinary shares of FCA. In the event that the overallotment options are exercised in full in both offers, Exor's shareholding in the ordinary capital of FCA will become approximately 29,5%. Even the share of Exor is in the red on Piazza Affari (-1,9%, a 33,93 euros, the second worst fall of the Ftse Mib).
The resources that FCA will acquire from the double placement will be used to reduce the group's debt, which will immediately decrease as a result of the immediate collection of over one billion euro from the sale of shares and subsequently as a result of the convertible loan. Another 700 million euro cut in FCA debt will also come from spin-off of Ferrari scheduled for the third quarter of 2015.
