Global law firm White & Case LLP has advised FTSE 250-listed Finnish mining company, Talvivaara Mining Company Plc, on its €225 million senior unsecured convertible bonds offering. This is the first "cash-settled" convertible bond issued by a Finnish publicly traded company in that it allows investors to exchange bonds for cash during the period prior to the bonds becoming convertible into Talvivaara's ordinary shares. The size of the deal was increased to €225 million after the greenshoe option was exercised by the joint bookrunners.
The bonds will become convertible into Talvivaara's ordinary shares subject to a decision by an extraordinary general meeting of shareholders expected to take place on 27 January 2011. Until such time, bondholders are entitled to exercise a cash settlement right whereby they would receive a cash amount equal to the market value of the shares notionally underlying the bonds. Talvivaara's shares are listed on the London Stock Exchange and NASDAQ OMX Helsinki.
"We are delighted to have advised Talvivaara in this convertible bond which continues our longstanding relationship with the company," comments Petri Haussila, Executive Partner of White & Case's Helsinki office.
"We have seen an interesting upsurge in deals, proposals and enquiries relating to convertible bonds. I think 2011 will see a lot of activity due to a combination of rising interest rates, rising equity markets and investor appetites for the convertible asset class," adds Michael Doran, a partner in White & Case's London office.
Bank of America, Merrill Lynch and J.P. Morgan acted as the joint bookrunners with respect to the offering.
White & Case also advised Talvivaara on its £190 million Initial Public Offering (IPO) on the London Stock Exchange in 2007.
The White & Case team involved on the deal was led by Helsinki partners Petri Haussila and Petri Avikainen and London partner Michael Doran. They were assisted by associates Heidi Hietanen, Jenna Nurmio and Richard Pogrel.
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