| Fri 8 Oct 2010, 8:34 | | LAF - Lonrho Plc - Launch of Convertible Bond |
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LAF
LOLAF
LAF - Lonrho Plc - Launch of Convertible Bond
LONRHO PLC
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813
Launch of Convertible Bond
8th October 2010
Lonrho Plc announces that it intends to make an offering (the "Offering") of up
to US$70 million, inclusive of over-allotment option, Guaranteed Convertible
Bonds due 2015 by the Company`s wholly-owned direct subsidiary, LAH Jersey
Limited (the "Bonds").The Bonds will be convertible into redeemable preference
shares of LAH Jersey Limited which will be guaranteed by, and will be
exchangeable immediately upon issuance for, ordinary shares of 1p each in the
Company ("Shares").
Settlement and delivery of the Bonds expected to take place no later than 15th
October 2010. The Bonds remain subject to shareholder approval.
The Bonds are expected to have a semi-annual coupon in the range of 6.5% - 7%
per annum and a conversion price set at a premium in the range of 25% - 30%
above the three day volume weighted average price of the Shares on the London
Stock Exchange from October 7th 2010, translated at a GBP-USD exchange rate of
US$1.5866. The reference price shall be subject to an adjustment of not lower
than 90% of the daily volume weighted average price of the Shares from the
period including the closing date to and including the date of the shareholder
meeting to approve the issuance of equity linked securities of the Company.
The Bonds will be issued at 100% of their principal amount and, unless
previously redeemed, converted or cancelled, will mature on the fifth
anniversary of the issue in 2015. The Company will have the option to call the
Bonds after the first three years, if the price of the Shares exceeds 130% of
the then prevailing conversion price over a specified period. The final terms of
the Bonds are expected to be announced later today.
The net proceeds of the Offering will be used to allow the Company and its
subsidiaries to repay certain existing indebtedness, to fund general working
capital and to accelerate growth in its operations. The Company will place the
equivalent of two years coupon in escrow.
Under the terms of the Offering, there will be a 90-day lock-up period on
issuances or sales of Shares or equity-linked securities by the Company, subject
to certain customary exceptions.
Application will be made to list the Bonds on the official list of the
Luxembourg Stock Exchange and to be admitted to trading on the Euro MTF Market
of the Luxembourg Stock Exchange. The Company`s Shares are traded on the AIM
market of the London Stock Exchange and application will be made for any Shares
issued on conversion of the Bonds to be admitted to trading on AIM.
The Bonds will be placed through an accelerated bookbuild placement with
institutional investors (outside the United States) conducted by ISM Capital
LLP, acting as sole Bookrunner and Manager in connection with the Offering.
Panmure Gordon (UK) Limited acted as Co-Manager.
David Lenigas, Executive Chairman of Lonrho commented:
"This convertible bond offering will allow the Company to take advantage of new
opportunities to significantly enhance shareholder value. For example, over the
past few months the Lonrho Agricultural division has seen an increase in demand
from the USA retail market for fish and other produce from Southern Africa. The
primary use of the funds being raised will permit the Company to meet the
logistical, processing and delivery requirements emanating from this exciting
and significant market."
Enquiries:
Lonrho Plc -
Geoffrey White, Chief Executive Officer +44 (0)20 7016 5105
David Armstrong, Finance Director +44 (0)20 7016 5105
Pelham Bell Pottinger
Charles Vivian +44 (0) 20 7861 3126
+44 (0) 7977 297903
James MacFarlane +44 (0) 20 7861 3864
+44 (0) 7841 672831
Beaumont Cornish Limited (Nomad)
Rosalind Hill Abrahams +44 (0) 20 7628 3396
Roland Cornish
ISM Capital LLP
Cliff Siegel
Michael Coakley
Andreas Hajialexandrou +44 (0) 20 7938 8980
Panmure Gordon (UK) Limited
Tim Linacre
Dominic Morley +44 (0) 20 7614 8388
South African Sponsor
Java Capital
Date: 08/10/2010 08:34:03 Produced by the JSE SENS Department.
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