Steinhoff International: Bond issue to push out maturities

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Steinhoff International planned to sell as much as e465 million (R6.8 billion) of bonds convertible into shares to push out debt maturities, the furniture maker and retailer said yesterday morning. Steinhoff, which operates in Africa, Europe and Australia, said in the afternoon that the conversion price had been set at R59.11 a share, based on a fixed exchange rate of R14.9199 to the euro. The initial conversion price represented a 30 percent premium over the volume-weighted average price of the shares on the JSE from launch to pricing. The bonds would carry a coupon of 4 percent a year, payable twice a year. The shares fell 1.5 percent to close at R46.05 on the JSE yesterday, reflecting the dilutive impact of the bonds. Steinhoff said it had granted joint bookrunners an over-allotment option of up to e65m in addition to the e400m it hoped to raise. It said the bonds would be convertible into about 118 million ordinary shares (assuming the over-allotment option was exercised in full), representing about 5.8 percent of its issued ordinary share capital. – Reuters and Staff reporter

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