LONR Lonrho

 

TIDMLONR 
 
RNS Number : 0742U 
Lonrho PLC 
08 October 2010 
 

Not for release in the United States, Canada or Japan 
 
8th October 2010 
 
                                   LONRHO PLC 
                           (the "Company" or "Group") 
 
                           Launch of Convertible Bond 
 
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       | +44          | 
| White,         | (0)20        | 
| Chief          | 7016 5105    | 
| Executive      |              | 
| Officer        |              | 
+----------------+--------------+ 
| David          | +44          | 
| Armstrong,     | (0)20        | 
| Finance        | 7016 5105    | 
| Director       |              | 
+----------------+--------------+ 
| Pelham         |              | 
| Bell           |              | 
| Pottinger      |              | 
+----------------+--------------+ 
| Charles        | +44          | 
| Vivian         | (0) 20       | 
|                | 7861 3126    | 
+----------------+--------------+ 
|                | +44          | 
|                | (0)          | 
|                | 7977 297903  | 
+----------------+--------------+ 
| James          | +44          | 
| MacFarlane     | (0) 20       | 
|                | 7861 3864    | 
+----------------+--------------+ 
|                | +44          | 
|                | (0)          | 
|                | 7841 672831  | 
+----------------+--------------+ 
| Beaumont       |              | 
| Cornish        |              | 
| Limited        |              | 
| (Nomad)        |              | 
+----------------+--------------+ 
| Rosalind       | +44          | 
| Hill           | (0) 20       | 
| Abrahams       | 7628 3396    | 
| Roland         | +44 (0)      | 
| Cornish        | 20 7938 8980 | 
| ISM            | +44 (0) 20   | 
| Capital        | 7614 8388    | 
| LLP            |              | 
| Cliff          |              | 
| Siegel         |              | 
| Michael        |              | 
| Coakley        |              | 
| Andreas        |              | 
| Hajialexandrou |              | 
| Panmure Gordon |              | 
| (UK) Limited   |              | 
| Tim Linacre    |              | 
| Dominic Morley |              | 
|                |              | 
+----------------+--------------+ 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCDDBDGUDGBGGR 
 

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