INSPECTORATE ISSUES 200 MLN MARK EQUITY EUROBOND
A unit of Inspectorate International
AG <INSZ.Z> is raising 200 mln marks through an equity warrant
eurobond package with a two pct coupon priced at par, lead
manager Schweizerische Bankverein (Deutschland) AG said.
    The five-year bond, for Inspectorate International Finance
NV, gives investors options on two separate warrant series "A"
and "B" exercisable into participation certificates in parent and
guarantor Inspectorate International AG.
    The first "A" series carries warrants for four participation
certificates. Upon exercising the "A" warrants, investors also
get two warrants for the "B" series.
    The "A" exercise period runs from May 7, 1987, to August 6,
1987. The exercise price is 543 Swiss francs.
    Of the two "B" warrants, one entitles investors to purchase
one participation certificate in Inspectorate International AG
and the other provides seven warrants.
    Investors may pay for "B" participation certificates by
redeeming the bond issued today. In this case, the bond, issued
in denominations of 5,000 marks, will be valued at a fixed
price of 4,200 Swiss francs, or 119.05 francs per 100 marks.
    Participation certificates acquired with "B" warrants will be
priced at 597 francs, equalling the price of the first tranche,
plus a 10 pct premium. The exercise period for the "B" series is
from August 8, 1987 to May 5, 1991.
    Fees for the bond total 2-1/4 pct, with 1-1/2 points for
selling, and 1-3/4 for management and underwriting combined.
    Investors will pay for the bond on April 8, and the bond
pays annual interest on the same day. It matures on April 8,
1992. The bond and warrants will be listed in Frankfurt.
    If all participation share warrants are exercised, the
company will obtain some 300 mln marks in new equity.
    The construction allows Inspectorate to borrow at lower
cost than a comparable convertible bond and will give the
Inspectorate equity through issues of participation
certificates in West Germany, a Swiss Bank Corp spokesman said.
    Inspectorate requires funding to finance its purchase of a
51 pct stake in Harpener AG, a diversified West German group,
and other recent acquisitions.
 REUTER
