New York, July 13 - Accor said it is offering €278.6 million mandatory convertible bonds in the Oranes structure at par to yield two-month Euribor plus 40 basis points with a 16.6% initial conversion premium.
BNP Paribas and CDC IXIS Capital Markets are lead managers for the offering. The convertibles are not being offered in the United States.
Proceeds will be used to fund Accor's purchase of 4.1 million shares or a 28.9% stake in Club Mediterranee from the Agnelli group. If the transaction is completed the convertibles will be redeemed after one year in stock. If it is not completed, the convertibles will be redeemed in cash.
Existing shareholders of Accor will have pre-emptive rights to subscribe to the issue at the rate of three bonds per 86 shares. La Caisse des Depots et Consignations has agreed to backstop the offering.
Accor is a Paris-based hotel and travel services company.
| Issuer: | Accor
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| Issue: | Mandatory convertible bonds in Oranes structure
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| Amount: | €278.6 million
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| Maturity: | Aug. 6, 2005
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| Coupon: | Two-month Euribor plus 40 basis points, payable every two months
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| Price: | Par of €40
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| Redemption price: | Mandatory conversion unless Agnelli group has not sold 4.1 million Club Mediterranee shares to Accor, in which case par in cash
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| Yield: | Two-month Euribor plus 40 basis points
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| Conversion premium: | 16.6% over July 9 close of €34.23
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| Conversion ratio: | 1
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| Settlement date: | Aug. 6
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| Lead managers: | BNP Paribas, CDC IXIS Capital Markets
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