Issue of Debt

 

TIDMCOD 
 
RNS Number : 5565T 
Compagnie de Saint-Gobain 
29 September 2010 
 
 
 
                                                              September 29, 2010 
 
 
 
 
 
SUCCESSFUL BOND EXCHANGE AND BOND BUYBACK 
 
 
 
Compagnie de Saint-Gobain has successfully placed EUR750 million worth of 4.00% 
bonds due 2018.The issue proceeds will be used to refinance EUR634 million in 
outstanding bonds maturing in 2013 and 2014 (with coupons ranging from 6.00% to 
8.25%). In addition, to optimize use of cash reserves, Saint-Gobain will buy 
back EUR323 million worth of 4.25% bonds due 2011. 
 
 
These transactions will enable Saint-Gobain to extend and smooth its bond debt 
maturity profile, by reducing the 2013 and 2014 maturities by EUR320 million and 
EUR314 million respectively and substituting a new EUR750 million maturity in 
2018. They will also reduce the average cost of the Group's debt. 
 
 
 
The transactions are being carried out as follows: 
 
 
- Compagnie de Saint-Gobain today placed EUR750 million worth of 4.00% bonds due 
October 2018. The new issue attracted considerable investor interest, with the 
order book reaching more than EUR2 billion in the space of one hour, allowing the 
transaction to be finalized very quickly on attractive terms. 
 
- BNP Paribas today concluded the buyback offer launched on September 22, 2010 
for Saint-Gobain 4.25% bonds due May 2011 (EUR1,100 million nominal amount), 6.00% 
bonds due May 2013 (EUR750 million nominal amount), 7.25% bonds due September 2013 
(EUR750 million nominal amount) and 8.25% bonds due July 2014 (EUR1,000 million 
nominal amount). Investors responded favorably by tendering an average of nearly 
27% of the issues to the offer. 
 
- Compagnie de Saint-Gobain will deliver to BNP Paribas the latest bond issue 
plus a cash sum in settlement of the bonds bought back by the bank. 
 
The success of this transaction is a further demonstration of bond investors' 
confidence in the credit quality of Saint-Gobain, whose long-term debt issues 
are rated BBB by Standard & Poor's and Baa2 by Moody's. 
 
 
 
 
 
 
 
 
 
 
 
 
BNP Paribas (global coordinator and lead structuring advisor), JP Morgan 
(structuring advisor), Citi, HSBC, The Royal Bank of Scotland and Société 
Générale CIB acted as lead managers for this transaction. 
 
 
 
About Saint-Gobain 
Saint-Gobain, a worldwide leader in the habit and construction markets, designs, 
manufactures and distributes building materials, providing innovative solutions 
in expanding emerging markets and in the buoyant energy efficiency and 
environmental protection segments. With EUR37.8 billion of sales in 2009, 
Saint-Gobain is present in 64 countries and employs over 190,000 people. 
 
 
 
 
 
+------------------------+---------------------------+ 
|                        |                           | 
|    Press relations     |     Analyst/Investor      | 
|                        |        relations          | 
|                        |                           | 
+------------------------+---------------------------+ 
|                        |                           | 
|                        |  Florence TRIOU-TEIXERA   | 
|    Sophie CHEVALLON    |    [phone]      | 
|   [phone]    |      Etienne HUMBERT      | 
|                        |    [phone]      | 
|                        |      Vivien DARDEL        | 
|                        |    [phone]     | 
|                        |                           | 
+------------------------+---------------------------+ 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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