Lafarge buys back €447.2 million Oceanes

New York, Nov. 29 - Lafarge said it repurchased €447.2 million principal amount of its convertible bonds due Jan. 1, 2006 in the Oceanes structure from Nov. 21 to Nov. 25.

The company paid a total of €495.7 million for the securities.

With the latest buyback, Lafarge has now bought 64% of the Oceanes. It added that it may repurchase more.

Lafarge bought the bonds under a tender offer made on the French market.

As announced on Nov. 21, Lafarge was offering a price based on the discounted future cash flows on the securities plus a premium. The premium will be the difference between the yield implied in the prices at which previous purchases were executed and the interpolated Euribor curve, minus 2 basis points. Future cash flows will be discounted at a rate to maturity interpolated from one- and two-month Euribor. Settlement will be based on the date of purchase plus two working days.

Lafarge originally issued €1.3 billion of the Oceanes in June 2001 but from then until just before beginning the tender offer had repurchased 29.6% of the issue in off-market transactions. The tender offer was intended to make available to all holders the prices available in the off-market buybacks over the past 12 months.

Dresdner Kleinwort Wasserstein ran the offer.

Lafarge is a Paris, France-based building materials company.

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