Convertible bond

LAMDA DEVELOPMENT S.A. announced that its 100% subsidiary, LAMDA ENERGY INVESTMENTS S.M.S.A., signed a share transfer agreement regarding the purchase of 20% of the share capital of R Energy 1 Holding for a cash consideration of €5m.

The conversion of Piraeus Bank's contingent convertible bonds (CoCos) into shares will be at a price of 6 euros per share, Kathimerini understands.

This is going to cost the Hellenic Financial Stability Fund, the lender's majority shareholder, some €1.5 billion, according to sources.

International agencies view the outlook of Piraeus Bank favorably after the formal verdict by the European Central Bank that leads to turning the Greek lender's contingent convertible bonds (CoCos) into common shares, and despite the major drop in third-quarter profits announced.

Construction group GEK Terna will issue a seven-year convertible bond from Tuesday to Thursday next week, aiming to raise up to 120 million euros, it said on Thursday.

The listed company stated it would use the proceeds to fund its investment plans and refinance debt.

[Reuters]

Troubled alternative telecommunications provider Forthnet has four suitors - two from the industry (Vodafone and Wind) and two others which have not been named but are private equity funds with a strategic interest.

The expressions of interest in acquiring Forthnet - owner of the Nova satellite TV platform - were made last Friday, as consultant Nomura had dictated.

National Bank of Greece announced on Thursday it has proceeded to the repayment of contingent convertible bonds (CoCos) amounting to 2.03 billion euros which it issued in December 2015 and were held by the Hellenic Financial Stability Fund (HFSF).

[Reuters]

The Greek government on Tuesday issued a ministerial council act on the details of the recapitalization of banks defining an 8.0 % interest on bonds and mentioning the operation of CoCos (convertible bonds) with which Hellenic Financial Stability Fund will cover additional capital needs of Greek banks.

DryShips Inc, the shipper that has a $700 million convertible note due December 1, is negotiating with banks for a loan that would help repay the debt after it canceled a bond offering over the weekend, according to two people with knowledge of the company’s plans.

By Yiannis Papadoyiannis