Prysmian announces the launch of the placement of an equity-linked bond with a duration of five years and for a nominal amount of 300 million. According to Radiocor, the Bonds will be convertible into ordinary shares, subject to the approval, by the extraordinary shareholders' meeting to be held no later than 31 July 2013, of a capital increase with exclusion of the option right to be reserved exclusively for the service of the conversion of the Bonds.
Following this approval, according to a note, the company will issue a special notice for bondholders. Pursuant to the terms of the bonds, and following the date indicated in the Settlement Notice, the company will satisfy the exercise of the conversion rights through the delivery of Prysmian ordinary shares deriving from the capital increase or, at its choice, with treasury shares present in the portfolio .
In the event of failure to approve the increase by the Long-stop Date, the company may within a limited period of time, in any case no later than ten trading days starting from the Long-stop Date, issue a notice to the bondholders and proceed with the repayment full advance of the bonds with payment (in addition to the accrued interest) of a cash premium calculated in the manner specified in the bond regulation.
If instead, following the non-approval of the increase, the Company has not issued the Shareholder Event Notice within the term established in the Bond regulation (and in certain limited circumstances even before that date), each bondholder may, within the terms established by the regulation, request the early cash repayment of its bonds. In this circumstance, the company will pay an amount in cash equal to the market value (determined in accordance with the provisions of the bond regulation) of the number of Prysmian ordinary shares to which the bondholder would have been entitled had he exercised the right to convert the bonds in ordinary shares.
