Pescanova returns with another CB

Pescanova looks set to dominate the European convertible universe if its issuance trend continues.

While the EMEA universe of convertibles shrank again last year and could do so this year, the Spanish fishing group returned to market for the third year in a row with last night’s launch of seven-put-four paper. The firm has embraced the product and its return is in large part to take out some of its existing paper, especially the highly dilutive 2015s from its January 2010 debut issue.

The company has €82m of 2015s outstanding, having bought €26m back alongside last year’s issue. The full €180m is outstanding on the 2017s, but the company is also tendering for these. The terms on the 2015s are more generous with a premium of around 6% offered to secondary prices, versus 3.2% on the 2017s.

Pescanova has maintained significant flexibility with a base size of €80m and 100% increase option to €160m. All proceeds above €100m must go into the tenders.

The new issue with provide a coupon of 8%–8.75%, against a premium of 25%–30% over the VWAP during the bookbuild today. The new paper offers cash settlement options for both issuer and investor in the event of conversion.

Pre-sounding meant there were some orders last night but the bulk of the bookbuild will be completed this morning.

Deutsche Bank is sole bookrunner pushing the leads on the previous deal – BNP Paribas and RBS – down to co-bookrunner slots.