COMPAGNIE FINANCIERE RICHEMONT COMPANY ANNOUNCEMENT
15 MARCH 2018
RICHEMONT PLACES €3.75 BILLION INAUGURAL EURO DENOMINATED BOND
Richemont, the Swiss luxury goods group, announces that it has successfully placed its inaugural Euro denominated bond transaction today with a volume of €3.75 billion, following a roadshow with fixed income investors across Europe.
The transaction launched on 15 March with three tranches maturing in 2026, 2030 and 2038. The notes are priced with a coupon of 1.0% for the €1.5bn 8 year maturity note, 1.5% for the €1.25bn 12 year note and 2.0% for the €1.0bn 20 year note.
The notes are expected to receive a rating of A+ (stable) in line with the rating assigned to Compagnie Financière Richemont SA by S&P Global Ratings.
The net proceeds of the issue of the notes will be used for the Group's general corporate purposes, which may include funding the acquisition of the ordinary shares of YOOX NET-A-PORTER GROUP S.p.A. (YNAP), in whole or in part, pursuant to the YNAP voluntary public tender offer.
Commenting on the bond transaction, Johann Rupert, Chairman of Richemont, said:
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"This transaction positions Richemont with European bond investors for the first time. We are pleased at the support the inaugural bond issue has received from investors, which demonstrates confidence in the quality of our assets and strength of our balance sheet. In line with Richemont's prudent balance sheet policy, we have taken advantage of the low interest rate environment to raise long-term debt. We will use the funds to invest in the development of our businesses."
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Richemont will make an application for the notes to be listed on the regulated market of the Luxembourg Stock Exchange.
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