15 October 1998: Belgian glassmaker Glaverbel recently said it had put its convertible bond issue on hold, due to unfavourable stock market conditions. The company also said that it had considered oth…
15 October 1998: Belgian glassmaker Glaverbel recently said it had put its convertible bond issue on hold, due to unfavourable stock market conditions. The company also said that it had considered other financing options including a long-term bank loan. “We are waiting,” spokeswoman Marie-Ange Dhondt said. “One thing is for sure – we are not willing to offer the shares at too low a price.” The issue was reportedly intended to pay for part of Glaverbel“s acquisition of PPG Europe. Dhondt said the situation in European stock markets had led the company to reconsider the convertible bond issue. “If the position on the stock exchange goes on, then we could envisage other alternatives such as a long-term bank loan where the rates are rather good for the moment,” she said. “But it is too early to say whether we are or are not going through (with the bond issue),” she added. She said Glaverbel had a good relationship with the banks and would hope for a good deal on any loan. Glaverbel announced plans to issue US$ 100 million to US$ 130 million of convertible bonds at the beginning of September to finance part of its US$ 333 million takeover of the European flat glass activities of PPG Industries Inc. At the time Glaverbel said it would use its treasury stock, representing about 9.6% of its capital, to cover the conversion of the bonds.