Maire Tecnimont has issued a convertible bond. It is a 100 million euro equity linked bond. A bond loan reserved for institutional investors for an initial amount of 70 million, which may be increased up to 20 million in the event of exercise of the increase option and which the company will have the right to exercise by the pricing date and a further 10 million, in case of full exercise of the over-allotment option by the Joint Bookrunners (Banca IMI, Unicredit, Mps and Banca per le Imprese) within 3 working days prior to the payment date, scheduled for 20 February 2014.
“The Maire Tecnimont bonds – explains a note – will be convertible into ordinary shares of the company, subject to the approval by the extraordinary shareholders' meeting of the company of a capital increase with the exclusion of the option right to be reserved exclusively for the service of the conversion of the bonds. The new bond, issued at par for a nominal unit value of 100 thousand euros, will have a fixed annual coupon of between 4,875% and 5,875%, payable half-yearly in arrears until 20 February 2019".
“The placement – continues the company – will allow Maire Tecnimont to obtain a wider diversification of financial resources andoptimization of the financial structure of the company, through the raising of funds on the capital market. These funds will be used to finance the business activity, in line with the 2013-2017 Business Plan approved on 5 March 2013, and will not be used to repay the bank debt”.
Furthermore, on the maturity date of the bonds, in the event that the company has issued a Physical settlement notice, or has at its disposal a sufficient number of shares to be allocated for this purpose, Maire Tecnimont will be entitled to deliver a combination of shares and cash , instead of regulating the conversion of the bonds exclusively in cash, according to the methods specified in the regulation.
The initial conversion price of the bonds will be fixed by applying a premium equal to 35% over the weighted average price for the volumes of the shares recorded on the electronic stock market between the moment of the launch and the pricing of the bond. Maire Tecnimont will have the right to repay the convertible loan in shares, in cash or in both solutions. On the stock market, the stock was heavily sold after reaching a relative high above 1,80.
In Piazza Affari the stock for 0,18% around 17pm.
