PS. To better understand the "technical deep" (Sep 10), its scale, long-term (strategic) impact and who was actually interested in that particular price-formation - take a look at the issue's "T&C" below (and compare with c/b-issue from last May):
Mexico City, Mexico, September 10, 2015. América Móvil, S.A.B. de C.V. (“AMX”) [BMV: AMX] [NYSE: AMX] [NASDAQ: AMOV] [LATIBEX: XAMXL], announces that its wholly-owned Dutch subsidiary América Móvil B.V. (the “Issuer”) has completed the placement of EUR 750 million principal amount of guaranteed secured bonds (the “Bonds”) mandatorily exchangeable into ordinary shares of Koninklijke KPN N.V. (“KPN”) (the “Mandatory Exchangeable Bond Offering”). In line with market practice for equity-linked transactions in Europe, the Bonds were placed with institutional investors outside the U.S. in accordance with Regulation S under the U.S. Securities Act of 1933, as amended.
The Bonds will have a maturity of 3 years and will pay a coupon of 5.5 per cent per annum payable quarterly in arrear, as well as an additional interest corresponding to 85 per cent of the gross amount of cash dividends and distributions paid in relation to the underlying KPN ordinary shares (the “KPN Shares”).
The Reference Price has been set at €3.3374, being the volume-weighted average price of the KPN Shares on Euronext Amsterdam on September 10, 2015. Correspondingly, the minimum exchange price at which the Bonds could be exchanged for KPN Shares is €3.3374 and the maximum exchange price, being 27.5 per cent over the Reference Price, is €4.2552.
The number of KPN Shares included in the initial exchange property is fixed at 224,725,834 by dividing the principal amount of the Bonds by the Reference Price (the “Exchange Property”). The Exchange Property will be subject to any adjustments required under the terms and conditions of the Bonds. English law security will be granted over the Exchange Property in favour of the bond trustee, on behalf of the holders. The Mandatory Exchangeable Bond Offering is expected to close on September 17, 2015.
If not previously exchanged, the Bonds will be exchanged for KPN Shares on the maturity date, expected to be September 17, 2018. Upon exchange, the Issuer will have the flexibility to settle in cash, deliver the underlying KPN Shares or a combination thereof.
Following pricing, the Issuer and AMX have agreed not to place any further KPN Shares in the market for a period beginning today and ending 90 days following the closing of the Mandatory Exchangeable Bond Offering, subject to customary exceptions. The Issuer will use the proceeds from the Mandatory Exchangeable Bond Offering for general corporate purposes.