PARIS, June 8, 2001 (PRIMEZONE) -- Groupe DANONE (NYSE:DA) announced the closing of a Euro 870 million offering of convertible and/or exchangeable securities subject to an over-allotment option of 15%. The innovative structure of the securities includes a low coupon and enables Groupe DANONE to significantly lower its overall financing cost. This transaction will have a neutral impact on the Company's fully diluted EPS, on the basis of the Group's current financial structure.
The securities have an initial conversion premium of 30% and will bear interest at the rate of 1.20%, payable annually. The securities will mature on Jan. 1, 2007, at par and may be redeemed early at the option of investors at par plus accrued interest in June 2003, June 2004 and June 2005. Groupe DANONE also has an option to redeem the securities prior to maturity at par, from Jan. 1, 2005, if the stock price exceeds 130% of the conversion price. The securities may be converted at the option of the investor, at any time from Aug. 1, 2001, until maturity at the ratio of one share for one bond. Groupe DANONE, at its discretion, can settle conversions using either existing shares or new shares.
The proceeds from the offering will be used to partially refinance existing short- and medium-term debt.
This announcement is not an offer of securities for sale in the United States or any other jurisdiction. The securities have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration.