Eurazeo has exercised the increase option on its offering of bonds exchangeable for existing Danone shares from EUR500m to approximately EUR610m.
Eurazeo has exercised the increase option on its offering of bonds exchangeable for existing Danone shares from EUR500m to approximately EUR610m.
The offering size may be further increased to a maximum of approximately EUR700m in the event of an exercise in full of the over-allotment option granted to BNP Paribas and Caylon, joint lead-managers and joint bookrunners of the offering.
The issue of the bonds, representing as at today’s date approximately 56 per cent 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.
The transaction will allow Eurazeo to benefit from the upside potential in the Danone share price, up to the issue premium, over a five-year period.
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 five years (with its maturity being extended from 2011 to 2014).
The EUR45.25 nominal value of the bonds reflects an issue premium of 25 per cent over Danone’s reference share price.
