Michelin: the success of a bond issue

Michelin (PA:MICP) has announced this Friday afternoon successfully placed $ 600 million of convertible bonds non-dilutive redeemable in cash only at maturity of 2023. The clause of extension has been exercised in full.

At the same time, the giant of clermont-ferrand tyre has proceeded with the purchase of purchase options dénouables in cash only, in order to hedge its economic exposure in the event of exercise of the conversion rights attached to the bonds.

These are repayable in cash only, they do not give rise to the issuance of new shares or the delivery of shares Michelin-existing in the case of conversion.

This debt in dollars was immediately converted into euros.

Michelin intends to use the net proceeds from the issuance of the bonds for general corporate purposes, as well as the purchase options associated with the transaction.

The bonds will be issued on the 10th January next, the date of their settlement, at a price equal to 95.5% of the nominal value. They will have a face value of $ 200,000 obligation, will not bear interest and will be redeemed at par on 10 November 2023.

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