Brait to raise £350m in five year convertible bonds, yield is under 3% pa

From Brait:

Brait logoBrait S.E. Convertible Bond Offering Brait S.E. (“Brait” or the “Company”) hereby announces the launch of an offering (the “Offering”) of GBP350 million of unsubordinated, unsecured convertible bonds due in 2020 with a denomination of GBP100,000 each (the “Bonds”).

The Bonds, which are expected to mature on 18 September 2020, will be issued at par and are expected to carry a coupon of between 2.25% and 2.75% per annum payable semi-annually in arrear.

The Bonds will, subject to certain conditions and a cash settlement option at the discretion of the Company, be convertible into ordinary shares of the Company (the “Ordinary Shares”).

The initial conversion price is expected to be set at a premium between 30% and 35% above the volume-weighted average price of the Ordinary Shares on the Johannesburg Stock Exchange (translated into GBP) between launch and pricing.

The Company intends to use the net proceeds from the offering for general corporate purposes with a primary focus on funding strategic acquisitions in line with its stated strategy of driving sustainable long-term growth and value creation in its investment portfolio.

Application is intended to be made for the Bonds to be listed on the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange within 30 days following the Closing and Settlement Date.

BofA Merrill Lynch and Goldman Sachs International are acting as Joint Global Coordinators and Joint Bookrunners. Rand Merchant Bank, a division of FirstRand Bank Limited, and The Standard Bank of South Africa Limited are acting as Co-Bookrunners.

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