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BRIEF-STMicro announces $1.5 bln convertible bond offering
June 22, 2017 / 5:43 AM / in 4 months

BRIEF-STMicro announces $1.5 bln convertible bond offering

June 22 (Reuters) - STMICROELECTRONICS

* REG-ST ANNOUNCES (I) A US$1.5 BILLION DUAL-TRANCHE OFFERING OF NEW CONVERTIBLE BONDS, (II) THE EARLY REDEMPTION OF ITS 2019 CONVERTIBLE BONDS AND (III) THE LAUNCH OF A SHARE BUY-BACK PROGRAMME

* ‍NEW CONVERTIBLE BONDS WILL BE OFFERED IN TWO TRANCHES (WITH A MINIMUM SIZE OF US$500 MILLION FOR EACH TRANCHE) WITH A MATURITY OF 5 YEARS AND 7 YEARS​

* ‍5-YEAR MATURITY NEW CONVERTIBLE BONDS WILL NOT BEAR INTEREST​

* ‍NEW CONVERTIBLE BONDS WILL BE ISSUED AT 100.00% - 102.53% OF THEIR PRINCIPAL AMOUNT AND WILL BE REDEEMED AT 100% OF THEIR PRINCIPAL AMOUNT ON 3 JULY 2022​

* ‍7-YEAR MATURITY NEW CONVERTIBLE BONDS WILL BEAR INTEREST AT AN ANNUAL RATE BETWEEN 0.0% - 0.5%, PAYABLE SEMI-ANNUALLY IN ARREAR​

* ANNOUNCES THE LAUNCH OF A SHARE BUY-BACK PROGRAMME OF UP TO 19 MILLION SHARES FOR AN AMOUNT UP TO US$297 MILLION

* ‍NEW CONVERTIBLE BONDS WILL BE ISSUED AT 100% OF THEIR PRINCIPAL AMOUNT AND WILL BE REDEEMED AT 100% OF THEIR PRINCIPAL AMOUNT ON 3 JULY 2024​

* ‍INITIAL CONVERSION PRICES IN RELATION TO 5-YEAR MATURITY NEW CONVERTIBLE BONDS, AT A PREMIUM BETWEEN 35% - 40%​

* ‍INITIAL CONVERSION PRICES IN RELATION TO 7-YEAR MATURITY NEW CONVERTIBLE BONDS, AT A PREMIUM BETWEEN 35% - 40%​

* ‍APPLICATION WILL BE MADE FOR NEW CONVERTIBLE BONDS TO BE ADMITTED TO TRADING ON OPEN MARKET SEGMENT OF FRANKFURT STOCK EXCHANGE​

* ‍MORGAN STANLEY AND SOCIÉTÉ GÉNÉRALE CORPORATE & INVESTMENT BANKING ARE ACTING AS JOINT GLOBAL COORDINATORS​

* ‍CITIGROUP GLOBAL MARKETS LIMITED, J.P. MORGAN AND UNICREDIT ARE ACTING AS JOINT BOOKRUNNERS IN RESPECT OF OFFERING​

* TO BE USED BY FOR EARLY REDEMPTION OF 2019 CONVERTIBLE BONDS AND FUTURE REDEMPTION OF OUTSTANDING US$400 MILLION 1.00 PERCENT CONVERTIBLE BONDS DUE 2021

* ON BUYBACK: PRICE PAID FOR ANY SHARE PURCHASED PURSUANT TO THE BUY-BACK PROGRAMME SHALL BE SUBJECT TO A MINIMUM OF €1.04

* TO GIVE NOTICE TO HOLDERS OF 2019 CONVERTIBLE BONDS TO REDEEM ALL OF 2019 CONVERTIBLE BONDS ON 24 JULY 2017 AT THEIR PRINCIPAL AMOUNT

* ON BUYBACK: PRICE PAID FOR ANY SHARE PURCHASED TO BE SUBJECT TO MAX. OF 110% OF AVERAGE OF HIGHEST PRICE AT WHICH SHARES ARE QUOTED ON EACH OF 5 TRADING DAYS BEFORE PURCHASE

* HOLDERS OF 2019 CONVERTIBLE BONDS ARE ENTITLED TO CONVERT THEIR 2019 CONVERTIBLE BONDS INTO SHARES, CASH OR A COMBINATION OF SHARES AND CASH

* CONVERSION PRICE FOR REDEMTION OF 2019 CONVERTIBLE BONDS IS CURRENTLY US$12.1275 PER SHARE Source text for Eikon: Further company coverage: (Gdynia Newsroom)

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