Dufry has today completed a fresh placement of senior convertible bonds in an offering valued at CHF 500 million/US$535 million as the travel retail giant eyes signs of a trading recovery.
In an announcement initially made yesterday, Dufry said the bonds (due 2026) issued by Dufry One B.V are conditionally convertible into shares and are guaranteed by the company and two of its subsidiaries (Dufry International AG and Dufry Financial Services B.V).
Additionally, Dufry has offered holders of the CHF 350 million 1% convertible bonds (due 2023) a voluntary incentivised conversion.
The incentive offer and new convertible bonds, issued in denominations of CHF 200,000 at par and carrying a coupon of 0.75% payable semi-annually in arrears, is designed to strengthen the Basel-headquartered company’s balance sheet as the travel retail environment shows signs of recovery.
The conversion price of the new convertible bonds is CHF 87 corresponding to a conversion premium of 45% over the reference share price.
Dufry’s Board of Directors will seek shareholder approval at the next ordinary general meeting scheduled for 18 May.
Should approval not be passed and registered by 30 June, the new convertible bonds will be redeemed in cash at 102% of the greater of the principal amount and the fair market value.
The settlement date of the new convertible bonds is expected to be on or around 30 March.
An application for the listing and trading of the new convertible Bonds on the SIX Swiss Exchange will be made at a later stage.