and JP Morgan at 75bp. Sberbank CIB was also
a joint bookrunner.
Pricing was still due as IFR went to press
after the close on Friday.
THAILAND
INDORAMA EBs RAISE US$200mThe chairman and chief executive of
Thailand’s INDORAMA VENTURES sold US$200m
of exchangeable bonds last week, with the
company’s CANOPUS INTERNATIONAL vehicle as
the issuer. The bonds came with a standby
letter of credit from Bangkok Bank.
Sole bookrunner Morgan Stanley offered
the one-year zero-coupon bonds with an
exchange premium of 15%–17.5% over the
reference price of Bt56.75. Pricing at the top
of the range provides an initial exchange
price of Bt66.68.
The EB offering was well supported and
sold to 25 buyers, mainly international
investors.
There is a 90-day lock-up period for the
issuer and Indorama Ventures.
Canopus International owns 2.48% of the
petrochemicals company, with the
underlying for the bonds representing about
75% of its holding. Canopus is 50/50 owned
by Indorama CEO Aloke Lohia and Indorama
chairman Sri Prakash Lohia.
Indorama Resources, which is also owned
by the Lohia family, has a 63.4% stake in
Indorama Ventures.
UNITED STATES
NUTANIX ELEVATES TO HIGH VOL
ON US$500m CB
NUTANIX, a fast-growing software-as-a-service
company, secured US$500m from the sale of a
lVE
YEARûCONVERTIBLEûBONDûISSUEûONû4HURSDAYû
that will see it pay zero percent annually.
That low-cost is offset by potential stock
dilution, but even on that count the use of a
derivative avoids dilution recognition to
share prices double current levels.
Morgan Stanley, Bank of America Merrill Lynch
and Goldman Sachs launched the CBs after
the close Tuesday at US$400m with price
talk of 0%–0.5% and 25%–30% on the coupon
and conversion premium, respectively.
They offered up a credit spread of
L+300bp, implied vol of 40 and stock borrow
of 75bp, providing a theoretical valuation on
the security of roughly 100-103.
Heavy oversubscription allowed for an
upsize to US$500m and pricing at 0%, up
33%. Not only was that through the
aggressive-ends of talk, but Nutanix shares
rose 2% on the marketing to US$36.73.
“Investors are receptive to companies that
are raising capital for strategic and other
reasons,” a banker on the deal told IFR. “The
market is incredibly strong. Implied
volatility of 42,” added the banker, of the
pricing outcome. “The max is typically 40.”
Tesla was the last to pierce 40 implied vol
in 2014, on a US$2.3bn seven-year CB that
printed at a 1.25% coupon and 42.5%
conversion premium to the electric car
maker’s share price at the time, on the
banker’s recollection.
Nutanix, for its part, is using the proceeds
raised for general corporate purposes,
including potential acquisitions. It did spend
a portion of the proceeds on a call spread to
offset dilution to share prices above
US$73.46, a 100% premium to reference and
the US$48.85 investors are eligible to
convert into the underlying shares.
Nutanix, whose software helps clients
manage resources on the cloud, went publicin September 2016 at US$16 a share, for
perspective.
Pricing terms achieved on the CB issue are
supported by recent operational
MOMENTUMû&ORûTHEûlSCALûYEARûENDEDû
August 2017, the company reported
OPERATINGûCASHmOWûOFû53MûONû
revenues of US$766.9m, up from US$3.6m
and US$444.9m a year earlier.PATRICK INDUSTRIES ROLLS
WITH US$150m CBPATRICK INDUSTRIES, a manufacturer of products
for recreational vehicles and manufactured
housing, raised US$150m from the sale of a
lVE
YEARû#"ûFORûOPPORTUNISTICûREASONS
Bank of America Merrill Lynch and Wells Fargo
were able to increase the size from
US$125m to US$150m, ahead of pricing on
Wednesday post-close at a 1% coupon and
35% conversion premium, the midpoint of
0.875%–1.375% and 32.5%–37.5% talk.
The outcome allows investors to convert
at US$87.89.
Patrick Industries purchased a call spread,
whereby the embedded call option is
repurchased and warrants are sold at a
higher strike price, to offset dilution to
share prices above US$113.93, a 75%
premium to reference. It is using remaining
proceeds for potential acquisitions and
capital expenditures.STRUCTURED EQUITYGLOBAL CONVERTIBLE OFFERINGS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Morgan Stanley 4 876.91 15.1
2 BAML 3 852.92 14.7
3 Goldman Sachs 4 530.66 9.1
4 Barclays 1 500.00 8.6
=4 RBC 1 500.00 8.6
6 CSC Financial 1 466.34 8.0
7 JP Morgan 3 377.07 6.5
8 SG 2 293.58 5.1
=8 BNP Paribas 2 293.58 5.1
10 CIMB Group Hldgs Bhd 1 160.40 2.8
Total 15 5,808.98
Including exchangeables.
Source: Thomson Reuters SDC code: C9GLOBAL CONVERTIBLE OFFERINGS – EMEA
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 SG 2 293.58 18.1
=1 BNP Paribas 2 293.58 18.1
3 HSBC 1 150.00 9.2
=3 JP Morgan 1 150.00 9.2
5 Goldman Sachs 1 143.58 8.8
=5 Citigroup 1 143.58 8.8
=5 Morgan Stanley 1 143.58 8.8
8 Bank J Vontobel & Co 1 101.71 6.3
=8 UBS 1 101.71 6.3
=8 Credit Suisse 1 101.71 6.3
Total 3 1,623.03
Including exchangeables.
Source: Thomson Reuters SDC code: C09dALL INTERNATIONAL ASIAN CONVERTIBLES
(EXCLUDING JAPAN)
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 JP Morgan 1 160.40 50.0
=1 CIMB Group Hldgs Bhd 1 160.40 50.0
Total 1 320.80
Including exchangeables.
Source: Thomson Reuters SDC code: M11ALL INTERNATIONAL ASIAN CONVERTIBLES
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 JP Morgan 1 160.40 25.5
=1 CIMB Group Holdings Bhd 1 160.40 25.5
3 Goldman Sachs 1 153.75 24.5
=3 Nomura 1 153.75 24.5
Total 2 628.30
Including exchangeables.
Source: Thomson Reuters SDC code: M10ALL INTERNATIONAL US CONVERTIBLES
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 BAML 3 852.92 28.7
2 Morgan Stanley 3 733.33 24.7
3 Barclays 1 500.00 16.8
=3 RBC 1 500.00 16.8
5 Goldman Sachs 2 233.33 7.8
6 Wells Fargo 1 86.25 2.9
7 JP Morgan 1 66.67 2.2
Total 5 2,972.50
Source: Thomson Reuters SDC code: C9a