20th Mar 2018 18:27
The bonds were place by the company's subsidiary Glencore Funding LLC. The bonds does not bear interest and will be issued at an issue price of 93.25% of their nominal value, corresponding to an annual gross yield to maturity of 1.00%, on March 27, the expected settlement date of the bonds.
Concurrently with the bond placing, Glencore Funding also purchased cash-settled call options on Glencore shares to hedge its economic exposure to a potential exercise of the conversion rights embedded in the bonds.
The conversion rights in respect of the bonds will be cash-settled only and, as a result, the issue and conversion of the bonds will not result in the issuance of any new shares of Glencore.
The company plans to use the net proceeds from the bond issue for general corporate purposes and for the purchase of the call options.
Bank of America Merrill Lynch is acting as sole global coordinator for the offering and together with BNP Paribas, Barclays Bank PLC, HSBC and JPMorgan Securities PLC as joint bookrunners.
Shares in Glencore closed up 0.2% at
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