SYDNEY - Chemicals maker Nufarm Ltd's upcoming A$250 million ($285 million) hybrid securities offer is expected to be priced at a margin of around 170 basis points over the Bank Bill Swap Rate (BBSW), a fund manager has said.
The fund manager told Reuters the price range was "unofficial".
Roadshowsfor the deal kicked off in New Zealand on Wednesday, with stops in Auckland and Wellington, and will continue the week of October 9 in Australia with visits in Melbourne and Sydney through October 12, another source said.
The transaction can accept an additional A$50 million in oversubscriptions. Merrill Lynch and UBS are managing the sale.
The securities, called Nufarm Step-up Securities (NSS), are perpetual exchangeable floating rate notes which reset after five years. On the first reset date of November 24, 2011, the issuer can redeem or exchange the securities.
An institutional bookbuild is scheduled for October 19 and 20 with the initial margin expected to be announced on October 20.
The offer, marketed to institutional and retail buyers in Australia and New Zealand, comprises a priority entitlement to existing Nufarm capital note holders in Australia and New Zealand who will exchange their capital notes for the NSS by October 17.
Nufarm is rated BBB- by Standard and Poor's, and is expected to rate the NSS at BB, said a fund manager.
Proceeds will be used to refinance debt and for general and corporate purposes.
Key dates for the offer are, bookbuild October 19-20, margin announcement October 20, offer closing date November 17, start of trading December 1.
