Steinhoff International Holdings Ltd., the country’s biggest furniture retailer, will offer $1.2 billion of convertible bonds to raise cash for share repurchases.
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The bonds will mature in August 2022 and will have a coupon range of 0.5% to 1.25%, the company said in a statement on Thursday. The notes are expected to be priced Thursday and will close Aug. 15.
Steinhoff is pursuing a stock market listing in Frankfurt to increase exposure to investors in Europe. The company “has made substantial progress” toward that aim and will list in the fourth quarter, it said.
The coupon will be paid twice a year, with the first on Feb. 11. The conversion price is expected to be within a range of 35% to 40% of the volume-weighted average price of the shares listed in Johannesburg from the start time to the pricing. The proceeds will go toward share repurchases and other corporate purposes, the company said.
An application will be made to include the bonds for trading on the open market of the Frankfurt Stock Exchange, Steinhoff said. Citigroup Global Markets Ltd., HSBC Holdings Plc., JPMorgan Chase & Co. and Natixis SA are the joint bookrunners of the issue.
Steinhoff shares gained 0.2% to 77.07 rand as of 10:13 a.m. in Johannesburg, valuing the company at 283 billion rand. The stock is up 30% this year, compared with 3.7% gain on the broader FTSE/JSE Africa All-Share Index.
- Bloomberg
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