Press release
NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA.
LVMH announces issuance of $500m cash-settled synthetic convertible bonds
LVMH announces an issue of $500m non-dilutive cash-settled convertible bonds due 2021 (the «Bonds»).
The Bonds offer investors exposure to the performance of LVMH shares.
Concurrently with the issuance of the Bonds, LVMH will purchase financial instruments linked to the performance of its own shares to hedge its economic exposure under the Bonds. The Bonds will not give right to any new or existing shares and LVMH will be protected against any potential economic dilution. After the determination of the final terms of the Bonds (other than the Reference Price, as defined below, and the initial conversion ratio), the initial hedging transactions in relation to such financial instruments will be implemented, through notably the purchase of LVMH shares on the market and off-market by one or several of the bookrunners of the offering, over a period of 6 trading days from February 5 until February 12,2016 (the “Reference Period”).
The Bonds will have a par value of $250 per Bond and will not pay any coupon (zero-coupon). The Bonds will be issued at an issue price ranging between 100% and 103% of par value on February 15, 2016, the expected settlement date, and will be redeemed at par on February 15, 2021, corresponding to a yield to maturity ranging between -0.59% and 0.00%.The initial conversion price will be expressed in euros and will represent a conversion premium ranging between 32.5% and 37.5% over the Reference Price. The Reference Price will be determined as the arithmetic average of LVMH’s daily volume-weighted average share price in euros on the regulated market of Euronext in Paris over the Reference Period (the “Reference Price”). The initial conversion ratio of the Bonds will be determined on February 12, 2016, and will correspond to the nominal value per Bond divided by the initial conversion price converted in dollars.
The net proceeds of the issue of the Bonds will be used for general corporate purposes.
LVMH intends to apply for the Bonds to be admitted to trading on the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange.
This press release does not constitute a subscription offer of the Bonds and the offering of the Bonds does not constitute a public offering in any country, including in France.
