- new Euro-denominated undated non-call 5.25 year deeply subordinated fixed to reset rate bonds for an expected amount of EUR 500,000,000 with a first call date at the option of the Company in April 2024 (the “New Hybrid Bonds”).
- new Euro-denominated senior [6-7] year bonds for a benchmark size with maturity in February [2025-26] (the “New Senior Bonds” and, together with the New Hybrid Bonds, the "New Bonds").
At the same time, the Company also announces the launch of two following tender offers:
- A tender offer by the Company on its EUR 900,000,000 Undated 6 Year Non-Call Deeply Subordinated Fixed to Reset Rate Bonds issued on 30 June 2014 (ISIN: FR0012005924, the “Targeted Hybrid Bonds”), listed on the Luxembourg Stock Exchange (of which €900,000,000 are currently outstanding) for a maximum acceptance amount equal to the aggregate principal amount of the New Hybrid Bonds.
- A tender offer by Crédit Agricole Corporate and Investment Bank on the Company's EUR 900,000,000 2.625% Bonds due 5 February 2021 (ISIN: FR0011731876, the “Targeted Senior Bonds”), listed on the Luxembourg Stock Exchange (of which €900,000,000 are currently outstanding), for a maximum acceptance amount to be announced as soon as reasonably practicable following the pricing of the New Senior Bonds.
It is the Company’s intention to maintain the aggregate amount of its outstanding hybrid bonds at the current level and the Company remains committed to hybrid capital as a permanent part of its capital structure.
The Company intends to exchange the Targeted Senior Bonds acquired by Crédit Agricole Corporate and Investment Bank in the tender offer with the New Senior Bonds, and any balance (if any) of the proceeds remaining from the issue of the New Senior Bonds will be used for general corporate purposes and the refinancing of the outstanding amount of the EUR 600,000,000 2.500 per cent bonds due March 2019 for EUR 335.1 million remain outstanding.
The New Bonds are scheduled to be admitted to trading on Euronext Paris. It is also expected that the rating agencies will assign the following ratings:
- New Hybrid Bonds: a rating of BB/BB (S&P/ Fitch) and an intermediate equity content of 50%.
- New Senior Bonds: a rating of BBB-/BBB- (S&P/ Fitch).
The conditional results of the tender offers will be announced on:
- January 29th, 2019 (subject to any extension, withdrawal, termination or amendment of the tender offer) on the Targeted Hybrid Bonds.
- January 29th, 2019 (subject to any extension, withdrawal, termination or amendment of the tender offer) on the Targeted Senior Bonds.