LONDON (ShareCast) - British support services group Carillion has announced the launch of a £150m offering of senior unsecured convertible bonds.
Carillion said it intends to take advantage of favourable conditions in the convertible bond market to secure long-term financing at attractive terms.

Funds raised in the offering, Carillion said, will be used to repay borrowing under its revolving credit facility, funding recent acquisitions and for general corporate purposes.

The firm's subsidiary, Carillion Finance, will issue the bonds, which may be increased by up to approximately £30m at the option of Carillion before pricing.

"The bonds will be issued at par and are expected to carry a coupon of between 1.875% and 2.50% per annum payable semi-annually in equal instalments in arrear," the company said in a statement.

"Subject to certain conditions, the bonds will be convertible into fully paid ordinary shares of Carillion.

"The initial conversion price is expected to be set at a premium of between 25% and 30% above the volume weighted average price of the ordinary shares on the London Stock Exchange between launch and pricing."

Settlement and delivery of the bonds is expected to take place on or around 19 December, the firm said.

Carillion shares were 4.74% down to 327.48p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE