Holcim successfully launched a dual tranche convertible bond.
Jona, May 1st, 2002 - Holcim Overseas Finance Ltd., Hamilton, Bermuda and Holcim Capital Corp., Hamilton, Bermuda respectively, have launched yesterday a dual tranche convertible bond issue consisting of a CHF600 million convertible bond due 2012 and of a USD300 million convertible bond due 2017. Both bonds are unconditionally and irrevocably guaranteed by Holcim Ltd, Jona, Switzerland. The proceeds are used for refinancing existing debt, resulting from previous years acquisitions.
The CHF-issue, which has been structured as a 1% coupon (annual), premium redemption bond, has a life of 10 years, a yield to maturity of 2.50% (annual), an issue price of 100%, a redemption price of 116.81%, an initial conversion price of CHF454.03 equivalent to a premium of 21%. Investors may put the bonds at the end of years 5 and 7 at the bonds' accreted values. Holcim may call the bonds at their accreted value at any time after the end of year 5. The CHF bonds are offered for public subscription in Switzerland until 3rd of June 2002. There is a greenshoe option of CHF50 million (nominal value) to cover over-allotments.
The USD-issue has been structured as a zero coupon OID bond with a yield to maturity of 4.00% (semi annual), with an issue price of 55.21%, a redemption price of 100%, an initial conversion price of CHF457.78 (FX rate 1.6185) equivalent to a conversion premium of 22%. Investors may put the bonds on January 15th 2006, and after 6, 8 and 12 years at the bonds' accreted values. Holcim may call the bonds at any time after the end of year 6. There is a greenshoe option of USD40 million (gross proceeds) to cover over-allotments.
On conversion, the Issuers have the right to deliver in accordance with the terms of the bonds either bearer shares with CHF10 nominal value of Holcim Ltd from the conditional capital or from treasury stocks or the equivalent value in cash in CHF (CHF tranche) or USD (USD tranche) respectively.
The payment for both tranches has to take place on 10th of June 2002. Application will be made to list the CHF bonds on the SWX Swiss Exchange and the USD bonds on the Luxemburg Exchange. Credit Suisse First Boston and Société Générale are acting as Joint Bookrunners for the two issues.
With majority and minority interests in over 70 countries on all continents, Holcim is one of the world's leading suppliers of cement, as well as aggregates (gravel and sand), concrete and construction-related services.
This press release is not an offer for sale of convertible bonds of Holcim Overseas Finance Ltd. or Holcim Capital Corp. (the "Issuers") in the United States. The convertible bonds are not being registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States or to US persons except pursuant to an applicable exemption from such registration. Any offering of the convertible bonds will be made only by means of a prospectus containing detailed information regarding the Issuers and Holcim Ltd. and its management, including financial statements. Such prospectus will be made available through the Issuers.