HONG KONG (Dow Jones)--QBE Insurance Group Ltd. (QBE.AU) is launching up to US$850 million in senior convertible bonds, according to a term sheet seen by Dow Jones Newswires on Thursday.
The base deal is US$700 million, and the insurer has an option to increase the offering by up to US$150 million. The yield to final redemption is 2% to 2.5% with semi-annual accretion.
The bond's conversion price is US$25.44, giving it a premium of 30% over Thursday's closing price of US$19.50. The bond is non-callable for three years.
Bank of America Merrill Lynch is the sole bookrunner on the deal.
QBE Price at posting:
$21.20 Sentiment: None Disclosure: Not Held
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