Safran has successfully placed a €730 million convertible bond offering.
The issued bonds are convertible into new shares and/or exchangeable for existing shares (OCEANEs) due 1 April 2028.
Net proceeds will be used to refinance part or all of the outstanding OCEANEs due 21 June 2023, with the remainder used for general corporate purposes. Safran also intends to exercise its early redemption under the clean-up call option provided in the terms and conditions of the 2023 OCEANEs.
The bonds will not bear interest and will be issued at a price of 103.5% of par, corresponding to an annual gross yield to maturity of -0.50%.
The nominal unit value of the Bonds was set at €180.89, corresponding to a premium of 45% above the reference price of Safran's shares on the regulated market of Euronext Paris.
Unless previously converted or exchanged, redeemed or repurchased and cancelled, the Bonds will be redeemed at par on 1 April 2028.
Deutsche Bank and HSBC acted as joint global coordinators and joint bookrunners, while Natixis and BofA Securities were joint bookrunners.
HSBC is in charge of the settlement of the offering, CACEIS Corporate Trust will be the centralising agent and Aether Financial Services is the calculation agent.