By Stephanie N. Rotondo
Seattle, Sept. 22 Archer Obligations, a 98.38%-owned subsidiary of Groupe Artemis, priced a 375 million offering of 0% non-dilutive cash-settled bonds due 2023 at 102.25% of par to yield negative 0.4% with a 35% initial exchange premium, according to a company issued statement.
The issue is exchangeable for ordinary shares of Kering. Until Oct. 31, 2022, holders may only exercise the exchange option if the bonds trade below 97% of parity value for five out of 10 trading days or if the bonds are called, there is a change of control, a default or a distribution worth more than the stock value.
Credit Agricole CIB, Natixis, Societe Generale, BNP Paribas and CM-CIC Market Solutions were the bookrunners, each subscribing for 20% of the total amount.
The bonds can be redeemed at any time if there is less than 15% of the principal amount of the issue left outstanding, or if there is a change in French law.
Bondholders can put the issue upon a change of control.
Proceeds will be used for general corporate purposes.
The new issuance is part of Artemis strategy for the optimization of its financial structure and the diversification of its sources of financing. The proceeds will allow the company to extend is average debt maturity by optimizing costs.
| Issuer: | Archer Obligations
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| Securities: | Non-dilutive, cash-settled bonds
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| Exchange security: | Kering
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| Amount: | 375 million
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| Maturity: | March 31, 2023
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| Bookrunners: | Credit Agricole CIB, Natixis, Societe Generale, BNP Paribas and CM-CIC Market Solutions
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| Coupon: | 0%
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| Price: | 102.25% of par
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| Par: | 100,000
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| Yield: | Negative 0.40%
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| Exchange premium: | 35%
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| Contingent exchange: | Yes, if bonds trade below 97% of parity value for five out of 10 trading days
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| Call options: | If there is less than 15% of the principal amount of bonds left outstanding, or upon a change in law
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| Put options: | Upon a change of control
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| Pricing date: | Sept. 19
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| Settlement date: | Sept. 22
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| Distribution: | Regulation S
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| Stock symbol: | Paris: KER
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| Stock price: | 334.40 as of Sept. 21 close
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| Market capitalization: | 42.453 billion
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