(Updates with final terms)
LONDON Nov 13 French oil and gas field surveyor
CGGVeritas has issued a 315 million euro ($400
million) convertible bond to help fund its acquisition of Dutch
engineer Fugro's Geoscience unit.
CGGVeritas said in September it was buying the seismic data
division for 1.2 billion euros, a deal also part-funded by a 414
million euros rights issue.
CGGVeritas said on Tuesday the convertible bond's size could
be increased to 360 million euros if an over-allotment option
The bonds, which mature on Jan. 1, 2019, carry an annual
coupon of 1.25 percent, the bottom end of an indicated 1.25-1.75
percent range. The conversion price was set at 32.14 euros per
shares, a 40 percent premium.
CCGVeritas shares were down 3.2 percent at 22.96 euros at
"The stock is suffering from the announcements, given that
the deal could be dilutive in the context of a market which is
already down," said a Paris-based analyst.
The offer was run by Bank of America Merrill Lynch, BNP
Paribas, Credit Suisse and Societe Generale.
($1 = 0.7867 euro)
(Reporting by Kylie MacLellan in London; Additional reporting
by Blandine Henault in Paris; Editing by Dan Lalor)