LONDON (Alliance News) - Vodafone Group PLC said that the initial conversion price of the GBP2.88 billion of subordinated mandatory convertible notes it placed last week has been set at 217.30 pence. The stock closed at 214.72p on Tuesday.
This represents an initial conversion ratio of 46,019.32812 shares per GBP100,000 of the bonds, Vodafone said.
On Friday last week, the telecommunications giant said it had raised GBP2.88 billion through the issue of convertible bonds, to be issued in two tranches, one with with an 18-month maturity and 1.5% coupon and the other with a three-year maturity and 2.0% coupon.
The bonds will be convertible into ordinary shares representing around 5.0% of the company's current share capital, and it will hedge its exposure to share price movements via an option strategy.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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