Early redemption of the Mandatory Exchangeable Bonds
Corporate & other activities, Finance
Paris, January 26, 2009
Lagardère SCA and Natixis have agreed to bring forward from June 25, 2009 to March 24, 2009 the date for delivery of the third and final tranche of EADS N.V. shares in redemption of the Mandatory Exchangeable Bonds issued by Lagardère SCA in 2006(1)
On January 26, 2009, Lagardère SCA and Natixis, the sole subscriber to and sole holder of the 20,370 outstanding Mandatory Exchangeable Bonds, signed an amendment to the subscription contract whereby they agreed, on the initiative of Natixis, to bring forward the redemption date of the Mandatory Exchangeable Bonds – and consequently, the delivery date of the third tranche of EADS N.V. shares – from June 25, 2009 to March 24, 2009. Under the terms of this amendment, Lagardère SCA will deliver 20,370,000 EADS N.V. shares, representing 2.5% of the capital and voting rights of EADS N.V., to Natixis on March 24, 2009.
Lagardère SCA will retain its entitlement under the initial mechanism offering upside exposure to the EADS N.V. share price until the end of the initially agreed term and at the initially agreed price, with any benefit from this mechanism taking the form of a cash payment.
This early redemption will enable Lagardère SCA to save approximately €1.8 million during the first half of 2009 in respect of 2009 interest payments that would otherwise have been payable to Natixis.
Lagardère is a pure media group (books, press, broadcast, digital, travel retail and press distribution, sports trading and sports rights), and is among the world leaders in the sector.
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