Saint-Gobain said investors holding 99.42% of the 4.38 million Oceane convertible bonds issued by the company in February 2002 have decided to exercise the convertibility option, giving them 4 new or …
Saint-Gobain said investors holding 99.42% of the 4.38 million Oceane convertible bonds issued by the company in February 2002 have decided to exercise the convertibility option, giving them 4 new or existing Saint-Gobain shares for every bond. As a result, the company will issue 17.4 million new shares, representing a 4.96% rise in outstanding shares. Shareholder equity will increase by EUR 914.6 million, and net debt will be cut by the same amount. No interest will be paid on the bonds for the 2006, meaning that Saint-Gobain will be able to reduce financial expenses for the year by EUR 24 million. The 25,550 Oceane bonds that were not converted will be redeemed in cash at par, or EUR 210 per bond, with an interest payment of EUR 5.5125 per bond, on 2 January 2007.