MNV to issue bonds exchangeable for Richter shares

Debt

The Hungarian National Asset Management Company (MNV) will issue bonds worth about €900 million exchangeable for shares of pharmaceutical producer Richter to refinance €833 million of a similar bond maturing in 2014, company representatives announced yesterday.

The new bonds are expected to have a coupon in the 3.375%-3.875% range and carry a 30%-35% premium over the turnover-weighted average share price between the time of launch and pricing. When the bonds mature in 2019, they may be exchanged for Richter shares or repurchased by the state. Settlement of the bond is expected to take place on or around December 6, 2013.

London-based branches of Deutsche Bank AG and UniCredit Bank AG are joint lead managers and joint bookrunners in the offering.

The bonds maturing in 2014 carry a 4.4% coupon. These were issued to refinance a €639 million bond issued in 2004. MNV holds a little more than 25% of Richter’s shares.

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