ETI announces successful $400m convertible tender offer
.Lists $150m second, third tranches on ISM of LSE
The Ecobank Transnational Incorporated (ETI) on Friday, 27th October, 2017, announced that its convertible tender offer of $400 million to existing shareholders was successful.
The convertible tender offering was done in three tranches, taken by two institutional investors and retail investors, whiles the second and third tranches of $150m, is already listed on the International Securities market (ISM) segment of the London Stock Exchange (LSE).
ETI, the Lome-based parent company of Ecobank Group, in a statement signed by Mireille Bokpe-Anoumou, of group communications , said that the convertible loan was structured in three tranches , the first being convertible loan facility of $250m, arranged Through A Public Investment Cooperation of South Africa , an institutional investor.
The second and third tranches of the convertible Notes it said was fully subscribed by Qatar National Bank (QNB) also an institutional investor, while the third tranche of $10 million convertible notes was reserved for shareholders outside the institutional investors who participated up to $1.1m, while the balance was taken by QNB, thus boosting its participation to $148, 89m for both first and second tranches combined.
ETI’s Group Chief Executive, Mr. Ae Adeyemi, commending shareholders of the firm and lauding the transaction said that the firm’s ability to raise the huge capital from its shareholders, reflects confidence reposed in the company’s long term growth strategy “we want to thank all our shareholders for their tremendous support.”
The bank stated that the convertible debt due in 2022, will have a coupon, reset semiannually equal to 3 Month USD LIBOR plus 6.46 per cent per annum payable semiannually in arrears, while the debt will be convertible at the option of the holder of the convertible debt who is also an ETI shareholder into an ETI ordinary shares at an exercise price f 6US cents. During the conversion period of 10th October, 2019, to 13th October, 2022,
The conversion will be upon the occurrence of a change of control in accordance with the terms of the convertible debt, while the debt will be redeemed at 110 per cent of principal amount, where the conversion option is not exercised.
The company said the funds from placement would be primarily deployed to refinancing maturing debt facilities.
Bonny Amadi
