Eurazeo Launches Exchangeable Bond Offering For Danone Shares
May 28 2009 - 2:49AM
Dow Jones News
Eurazeo (RF.FR) said Thursday it launches an offering of bonds
exchangeable for existing Danone shares for an initial amount of
approximately EUR500 million.
The amount may be increased up to approximately EUR600 million
in the event of the exercise in full by Eurazeo of a 20 % increase
option and up to a maximum of approximately EUR690 million in the
event of the exercise in full of the over-allotment option granted
to BNP Paribas and Calyon, Joint Lead- Managers and Joint
Bookrunners of the offering.
The issue of the Bonds, representing initially as of Thursday
approximately 40% of the Danone shares currently held by Eurazeo
(through its subsidiary Legendre Holding 22), is part of its
announced monetization strategy of its holding of Danone shares,
which Eurazeo considers as liquid assets. This transaction will
allow Eurazeo to benefit from the upside potential in the Danone
share price, up to the issue premium, over a 5-year period. Eurazeo
reaffirms its confidence in Danone's future prospects.
The increase in its sources of financing will allow Eurazeo to
take advantage of new investment opportunities that could arise in
the current economic and financial environment and to continue to
support the development of the Group companies.
The issue will also allow Eurazeo to partially refinance its
existing indebtedness relating to its holding in Danone, and to
extend, for the refinanced portion, the duration of such financing
to 5 years (with its maturity being extended from 2011 to
2014).
Subject to the final terms to be announced, Eurazeo expects to
subscribe to the capital increase announced by Danone on May.25,
2009.
Subject to the final terms to be announced, Eurazeo expects to
subscribe to the capital increase announced by Danone on
May.25.
Company Web site: www.eurazeo.com