Issuance of Perpetual Callable Subordinated Instrument
Announcement by ARYZTA AG regarding the issuance of a CHF 325 million Perpetual Callable Subordinated Instrument (‘Hybrid Instrument’)
Zurich / Switzerland, 1 October 2010
ARYZTA AG (ARYZTA) announces that it has successfully raised hybrid capital of CHF 325 million through the issuance of a Hybrid Instrument, which will qualify as equity under International Financial Reporting Standards. The proceeds from the issuance will be used as principal financing for ARYZTA’s acquisition of the remaining 50% share of the Maidstone Bakery joint venture held by Tim Hortons Inc. as announced on 12 August 2010.
The Hybrid Instrument offers investors a coupon of 5% and is undated with an initial call date by ARYZTA after four years. The settlement date of the Hybrid Instrument is the 28 October 2010. Separately, ARYZTA has EUR 1.4bn debt financing facilities* in place with an average maturity of 7.1 years and had a net debt position of EUR 1.1bn as at 31 July 2010.
The successful hybrid capital raising was taken up by a broad Swiss retail investor base. UBS and Credit Suisse acted as joint bookrunners on this transaction.
Commenting on this capital raising, Owen Killian Chief Executive Officer of ARYZTA said;
“This has been a first time for us to access the market for hybrid financing instruments and we are very pleased with the strong demand from predominantly Swiss investors. It enables us to fund the announced acquisition of the remaining 50% in Maidstone Bakeries not yet owned by ARYZTA while at the same time retaining a prudent capital structure.”
*Debt financing facilities valued at current foreign exchange rates
THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN INVITATION OR OFFER TO ACQUIRE, PURCHASE OR SUBSCRIBE TO SECURITIES. THE OFFER OF THE INSTRUMENT IS PROHIBITED OR RESTRICTED IN VARIOUS JURISDICTIONS INCLUDING U.S.A., UNITED KINGDOM AND THE EUROPEAN ECONOMIC AREA.
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