Czech 70% state-owned utility CEZ AS (BAACEZ.PR) announced an
offering of approximately 470.2 million euro ($640 million) bonds
exchangeable for the shares of Hungarian oil and gas company MOL
Nyrt (MOL.BU), the company said on its website after pricing of the
bonds on Tuesday.
MAIN FACTS:
- The deal was priced with a 0.00% coupon and initial exchange
price was set at EUR61.25 per share, reflecting a premium of
35%.
- The premium is calculated over the volume-weighted average
price of HUF13,796.40 of the shares on the Budapest Stock Exchange
between launch and pricing of the bonds. The forint value was
calculated into euros using the euro-forint exchange rate of
HUF304.1.
- CEZ announced the offering after MOL's option to buy the
shares expired last Thursday.
- Settlement is expected to take place Feb. 4.
- The bonds will be issued at 100% of their principal amount
and, unless previously exchanged, redeemed or purchased and
canceled, will be redeemed on Aug. 4, 2017 at the issuer's option
in cash or through the delivery of MOL shares or a combination of
shares and cash.
- Bond holders will have the right to exchange the bonds for
shares between Jan 25, 2017 and July 21, 2017, with the issuer
having the right to choose to deliver part or all of the due amount
in cash.
- CEZ holds an ownership stake of 7.35% in MOL, which it
acquired for HUF30,000 apiece in January 2008, with an option to
buy them back at HUF 20,000 any time within three years. The
acquisition was part of a strategic partnership agreement between
the two companies. An extended option, carrying the same price,
expired Jan. 23.
- CEZ was trading down 2.8% or CZK14.5 at CZK500 at 16:03 GMT
and MOL was trading down 1.2% or HUF170 at HUF13,660.
Write to the Budapest bureau at budapest@dowjones.com
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