20th Sep 2018 07:36
LONDON (Alliance News) - Commodities trader Glencore PLC said Thursday that it has raised USD125 million via the placing of non-dilutive zero coupon cash settled guaranteed convertible bonds due 2025.
The bonds were placed by the company's subsidiary Glencore Funding LLC, and issued on the same terms - bar the issue price - as the USD500 million bonds issued in March 2018.
The initial issue price of the new bonds will be 89% of their nominal value, with the final price to be determined in due course. The bonds issued in March were at an issue price of 93.25% of their nominal value.
The new bonds will be fully fungible and consolidated with the bonds issued in March.
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.
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Glencore