Atlas Copco seeks OK for split-off plans under three note series

By Susanna Moon

Chicago, May 23 – Atlas Copco AB said it soliciting consents for its proposed split-off under its €500 million 2.625% notes due March 2019, €500 million 2.5% notes due February 2023 and €500 million 0.625% notes due August 2026.

Atlas Copco plans to split the corporate group into two companies, Atlas Copco and a new company to be named Epiroc, and to distribute the shares in Epiroc to the shareholders of the issuer, which would continue to be the parent company of the Atlas Copco group, according to a company announcement.

The proposal would constitute an event of default, and the issuer is soliciting consents “to ensure that there is no possibility” of that happening as a result of the transaction, the release said.

Noteholder who send consent instructions in favor of the extraordinary resolution by 11 a.m. ET on June 7 will receive a consent fee of 0.25%.

Holders may continue to submit consents after the early deadline but will not receive the consent fee for those consent instructions, the release noted.

Bondholder meetings have been set for June 14 in London beginning at 5 a.m. ET.

Atlas Copco makes compressors, construction and mining tools and equipment, power tools and assembly systems. The company is based in Stockholm.

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