New York, July 30 - France Telecom priced €442 million 6¾% notes due 2005 mandatorily exchangeable into shares of STMicroelectronics NV using the SAILS (Stock Appreciation Income Linked Securities) structure.
The issue, priced after the close Monday, allows France Telecom to sell its remaining direct interest in STMicroelectronics.
The securities were sold in a private placement outside the U.S., Canada, Japan and Italy.
Depending on the stock price at maturity, France Telecom will deliver between 20.13 million and 26.42 million shares of STMicroelectronics stock. If STMicroelectronics stock price is above €21.97 at the maturity of the notes, France Telecom will have an additional 6.3 million shares it can sell, providing additional proceeds.
Credit Suisse First Boston was bookrunner for the offering with ABN AMRO Rothschild, Deutsche Bank, Merrill Lynch International and SG Investment Banking as co-lead managers.
| Issuer: | France Telecom
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| Issue: | SAILS (Stock Appreciation Income Linked Securities) mandatory exchangeables
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| Amount: | €442.22 million
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| Coupon: | 6¾%
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| Maturity: | Aug. 6, 2005
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| Price: | Par of €20.92
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| Exchange ratio before maturity: | 0.9524
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| Exchange period: | Until seven trading days before maturity
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| Exchange ratio at maturity: | 1.25 if stock price averages €16.74 or less for 15 trading days ending three trading days before maturity date
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| 0.9524 if stock price averages €21.97 or more
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| Ratio of €20.92 to stock price if stock price is between €16.74 and €21.97
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| Settlement: | Aug. 6
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