IGD has successfully completed the offering of new shares via the capital increase and the offering of convertible bonds
IGD S.p.A. has successfully completed:
- The offering of new shares issued via the capital increase with exclusion of any pre-emption right for an amount of Eur 98.55 million and
- The offering of convertible bonds for a total amount of Eur 230 million
Immobiliare Grande Distribuzione S.p.A. (“IGD”) confirms that today has successfully completed the placement of ordinary shares coming from the capital increase with exclusion of any pre-emptive right, as approved by IGD’s Board of Directors (“BoD”) on 7 May, 2007, for a total amount of Eur 98.55 million and the offer of convertible bonds in IGD ordinary shares with a 5 year maturity, as approved by IGD’s Board of Directors on 9 May, 2007, for an amount of Eur 230 million.
Capital increase offering with exclusion of any pre-emptive right
The placement of 27 million shares coming from the capital increase with exclusion of pre-emptive right, corresponding to approx. 9.5% of IGD’s share capital, has been executed by way of an Accelerated Bookbuilding reserved for subscription by Italian and foreign institutional investors, at Eur 3.65 per share.
Settlement and delivery of the new shares will occur on 15 May, 2007. Following the offering IGD will have 309,249,261 ordinary shares outstanding.
JPMorgan acted as Sole Global Co-ordinator and Bookrunner for the accelerated bookbuilding of 27 million new ordinary shares with exclusion of pre-emptive right.
Offering of convertible bonds on IGD new shares
The 5 year convertible bonds offering into IGD new ordinary shares have been successfully placed for an amount of Eur 230 million (including the exercise of the increase option for an amount of Eur 30 million). The convertible bond was priced with a coupon and yield to maturity of 2.5% per annum, a conversion premium of 35% above the subscription share price of the capital increase, Eur 3.65, implying a conversion price of Eur 4.93, a conversion ratio of 20,283.98 IGD shares for each convertible bond which has a nominal amount of Eur100,000 and a number of shares underlying the convertible bonds equal to 46,653,144.
IGD will apply for the convertible bonds to be admitted to listing on the Euro-MTF market of the Luxembourg Stock Exchange.
The convertible bonds were offered solely to institutional investors outside the United States, Canada, Australia and Japan. Closing and settlement of the convertible bonds is expected to occur on or before the end of June 2007, subject to approval by an Extraordinary Shareholders’ meeting for the issuance of the convertible bonds and of the underlying ordinary shares.
BNP Paribas and JPMorgan acted as Joint Bookrunners and Joint Lead Managers and JPMorgan acted as Sole Global Co-ordinator of the convertible bond offering.
The proceeds of the two offerings will be used by IGD to finance the new business plan, approved by the Board Directors on 7 May 2007, which includes investments for Euro 320, 280, 200 million respectively for the years 2008, 2009, 2010 and which aims to increase IGD’s EBITDA margin, reaching a target range of 75-78%.