Completion of US$60 million convertible bond
October 08 2010 - 1:23PM
UK Regulatory
TIDMLONR
RNS Number : 1395U
Lonrho PLC
08 October 2010
Not for release in the United States, Canada or Japan
8 October 2010
LONRHO PLC
("Lonrho" or the "Company")
Successful completion of a US$60 million convertible bonds offering which
opened this morning
Lonrho Plc announces that it has successfully completed the offering (the
"Offering"), announced earlier today, of US$60 million Guaranteed Convertible
Bonds due 2015 by the Company's wholly-owned direct subsidiary, LAH Jersey
Limited (the "Bonds"), subject to shareholder approval. The Bonds are
convertible into redeemable preference shares of LAH Jersey Limited which are
guaranteed by, and will be exchangeable immediately upon issuance for, ordinary
shares of 1p each in the Company ("Share" or "Shares"). Lonrho has the option to
further place up to US$10 million of additional Bonds, for which there is
significant existing demand.
The Bonds will be issued at 100 per cent of their principal amount and will bear
interest at the rate of 7 per cent. per annum, payable semi-annually in arrears.
The initial conversion price is GBP0.1559 per Share, representing a premium of
25 per cent. to the volume weighted average price of the Company's Shares on the
AIM market of the London Stock Exchange between 5 October and 7 October 2010.
If all of the Bonds were to be converted and immediately exchanged into new
Shares in the Company at the aforementioned conversion price, 282,999,798 new
Shares would be issued. Shares in the Company issued as a result of conversion
of the Bonds will rank pari passu with existing Shares in issue. Application
will be made for any Shares issued on conversion of the Bonds to be admitted to
trading on AIM.
Settlement and delivery of the Bonds is expected to take place no later than
15th October 2010. The conversion rights attached the Bonds are subject to
shareholder approval at a General Meeting of the Company, which is expected to
be held on Friday 29th October 2010 and is further subject to the consent of the
Jersey Financial Services Commission pursuant to the Control of Borrowing
(Jersey) Order 1958, authorising LAH Jersey Limited to issue the Bonds and to
raise money in Jersey.
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.
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 has been 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 Bonds were 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:
"We are delighted that the demand for a convertible bond in Lonrho has been so
strong. It is gratifying that so many of our existing institutional shareholders
have taken part in the offer. Likewise, I believe it is positive for the Company
that some very large new institutional investors that were not previously on the
Lonrho register have subscribed, demonstrating the growing interest in investing
in the emerging African market."
For further information, please contact:
Enquiries:
+----------------+--------------+
| Lonrho | - |
| Plc | +44 |
| David | (0)20 |
| Lenigas, | 7016 5105 |
| Chairman | |
+----------------+--------------+
| 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
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