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AB Industrivärden (publ) issues EUR500m 2.50 per cent convertible bonds

 

04 February 2010

Allen & Overy has advised AB Industrivärden (publ) (Industrivärden) on its issue of EUR500 million convertible bonds (the Bonds).  

In connection with the offering of the Bonds, Handelsbanken Capital Markets and Morgan Stanley & Co. International plc acted as joint lead managers and Morgan Stanley & Co. International plc acted as sole bookrunner.

The Bonds are convertible into class C shares in Industrivärden, subject to the passing of certain resolutions at an extraordinary general shareholders' meeting of Industrivärden. The Bonds will, upon conversion, be cash-settled until such time as the necessary resolutions are passed and, if the resolutions are not passed at a general meeting held on or prior to a prescribed date, Industrivärden may elect to redeem all but not some of the Bonds at a premium to their principal amount. 

Following the end of the conversion period of the Bonds, Industrivärden may exercise a soft mandatory redemption right requiring Bonds to be converted by their holders within a prescribed period or be redeemed against the delivery by Industrivärden of

  • the net proceeds of sale of all or part of the C Shares underlying a principal amount of the Bonds (Soft Mandatory Redemption)
  • a top-up amount in cash to the extent that the net proceeds of such sale are less than the principal amount subject to Soft Mandatory Redemption and, in addition
  • an amount in cash equal to the outstanding principal amount of such Bonds not subject to Soft Mandatory Redemption.

The convertible bonds were issued at 100 per cent. of their principal amount, were admitted to listing on the Official List of the Luxembourg Stock Exchange and trading on the Luxembourg Stock Exchange's Euro MTF Market and, unless previously converted, redeemed or purchased and cancelled, will mature on 27 February 2015.

The Allen & Overy team was led by ICM partner Jonathan Mellor, head of the Allen & Overy Nordic desk  and counsel Lisa Goransson and senior associate James S Taylor.

For further information please contact Karen Sanders, karen.sanders@allenovery.com, +44 203 088 4513.

 

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