On 19 September 2013, NV Bekaert SA launched an unconditional public exchange offer in Belgium and Luxembourg (the “Exchange Offer”) for all 150 000 fixed rate bonds in an aggregate amount of € 150 000 000 maturing 16 April 2014 and having a gross coupon of 6.75% (ISIN Code BE0002167337). By this voluntary exchange transaction, NV Bekaert SA wished to extend the maturity of part of its total existing bond financing.
Exchange Offer Terms
The holders of the existing bonds had the opportunity to exchange their existing bonds for 7-year bonds with a gross coupon of 4.75% to be issued on 17 October 2013 and maturing on 17 October 2020 (ISIN Code BE0002206721), in an exchange ratio of 1 to 1.
The net actuarial yield of the new bonds for individuals who are tax resident in Belgium (taking into account the direct taxes due by investors, including the Belgian withholding tax of 25%) amounts to 3.085% per annum (calculated in economic terms on the basis of a reference market price of the existing bonds of 102.963% on 18 September 2013 and under the assumption that the new bonds will be held from their issue date until their maturity date, at which time they will be repaid at 100% of their nominal value).
Results of the Exchange Offer
At the end of the exchange period on 7 October 2013, 45 614 existing bonds were tendered into the exchange offer, representing an aggregate nominal amount of € 45 614 000. The exchange offer will not be re-opened. The existing bonds exchanged in the exchange offer will be cancelled by NV Bekaert SA.
As a consequence, 104 386 existing bonds will remain outstanding. Existing bonds that were not tendered in the exchange offer will remain listed on the regulated market of NYSE Euronext Brussels until their final maturity date.
The 45 614 new bonds, representing an aggregate nominal amount of € 45 614 000, will be issued on 17 October 2013. The new bonds will be listed on the regulated market of NYSE Euronext Brussels.
The accrued but unpaid interest since 16 April 2013 on the existing bonds exchanged in the exchange offer, will be paid on 17 October 2013.