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LVMH launches a “tap issue” of US$150m of cash-settled synthetic convertible bonds.
LVMH (the “Company”) launches today a tap issue of non-dilutive cash-settled convertible bonds, which will be issued in a nominal amount of US$150m (the “New Bonds”). The New Bonds are to be issued on the same terms (save for the issue price) as, and, from the date which is expected to be not less than 40 days after their issue date, shall be fully fungible with and assimilated to the US$600m non-dilutive cash-settled convertible bonds due 16 February 2021 issued by the Company on 16 February 2016 (the “Original Bonds” and, together with the New Bonds, the “Bonds”).
Concurrently with the issuance of the New Bonds, LVMH will purchase financial instruments linked to the performance of its own shares to hedge its economic exposure under the New Bonds. The New Bonds will not give right to any new or existing shares and LVMH will be protected against any potential economic dilution. The initial hedging transactions in relation to such financial instruments will be implemented, through notably the purchase of LVMH shares on the market and off-market by one or several of the bookrunners of the offering, during the period of 2 trading days from 19 April until 20 April 2016 (the “Reference Period”).
The issue price of the New Bonds will be between US$258 and US$260 and will be announced later in the evening or before the markets open on 19 April 2016. This issue price will be adjusted following the Reference Period to reflect the share price performance and the evolution of the exchange rate euro/dollar.
The net proceeds of the issue of the New Bonds will be used for general corporate purposes.
This press release does not constitute or form part of any offer or solicitation to purchase or subscribe for or to sell securities of the Company and the issue of the New Bonds does not constitute a public offering in any country, including in France.