By Kenneth Lim
Boston, April 6 - France's Lagardere SCA priced about €1.99 billion of bonds mandatorily exchangeable through 2009 into shares of the European Aeronautic Defense and Space Co. at a coupon of 7.9% with an initial conversion premium of 15%.
The bonds may initially be exchanged into 61 million EADS shares at €37.49 per share in three equal deliveries every June 25 starting 2007. The last delivery in 2009 will see Lagardere's EADS stake reduced to 7.5% from the current 15%.
The exchangeables are being offered in conjunction with a placement by Germany's DaimlerChrysler of 61 million shares. The reference price for the exchangeables issued by Lagardere was the same as DaimlerChrysler's placement price.
IXIS Corporate and Investment Bank was the bookrunner of the deal.
Lagardere said the offering lets it receive the full benefit from any gains in the price of EADS shares up to a cap of 115% of the reference price, but guarantees a sale at the reference price if EADS' stock price declines.
Paris-based Lagardere, a media giant whose brands include Elle magazine, said the offering will reduce its high-technology exposure and continue its strategic refocusing on media activities.
EADS is a defense group owned by European interests, and its units include jet manufacturer Airbus.
| Issuer: | Lagardere SCA
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| Issue: | Mandatory exchangeable bonds
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| Exchange shares: | European Aeronautic Defense and Space Co.
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| Bookrunner: | IXIS Corporate and Investment Bank
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| Amount: | €1.99 billion
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| Maturity: | June 25, 2009
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| Coupon: | 7.9%
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| Yield: | 7.9%
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| Conversion premium: | 15%
|
| Conversion price: | €37.49
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| Pricing date: | April 6
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