Eurazeo: Danone Convertible Bond Issue Reaches About EUR610 Million
May 28 2009 - 9:37AM
Dow Jones News
Eurazeo SA (RF.FR) launched Thursday an offering of bonds
exchangeable for existing Groupe Danone SA (BN.FR) shares for an
initial amount of approximately EUR500 million, increased to
approximately EUR610 million through the exercise in full by
Eurazeo of its increase option.
The offering size may be further increased to a maximum of
approximately EUR700 million in the event of an exercise in full of
the over-allotment option granted to BNP Paribas and Calyon, joint
lead-managers and joint bookrunners of the offering.
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).