UPDATE 1-CGGVeritas issues 315 mln euro convertible bond

Tue Nov 13, 2012 11:25am EST

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(Updates with final terms)

LONDON Nov 13 (Reuters) - 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 were exercised.

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 1615 GMT.

"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)

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