Südzucker AG successfully closed offering of Euro 250 million 5 year convertible
The Südzucker AG Mannheim/Ochsenfurt, Mannheim, Europes largest sugar producer, has successfully placed a Euro 250 million convertible. The convertible was priced at a coupon of 3.0% and a conversion premium of 37.5%. The conversion price is Euro 20.53.
The offering allows Südzucker AG to secure attractive long-term financing and to benefit from the particularly attractive market conditions due to the combination of low interest rates and strong demand from convertible investors. The proceeds will be used to buy the remaining approx. 15% of Südzuckers Belgian subsidiary Raffinerie Tirlemontoise S.A. (RT). Südzucker will thereby increase its stake in RT and indirectly also in its subsidiary Saint-Louis Sucre S.A. to 100%. This will lead to a sustainable increase in the groups net income and improve the cash flow by approx. Euro 19 million p.a.. Earnings per share will increase by approx. 10 Cent.
The convertible bond was issued through Südzucker International Finance BV, a Dutch subsidiary of Südzucker AG, and will be guaranteed by Südzucker AG. Deutsche Bank is the Bookrunner on the convertible bond offering. Bayerische Hypo- und Vereinsbank AG and DZ Bank AG are both Co-lead managers. Settlement is expected on 8 December 2003.
Board of management
This notice is not an offer for sale or a solicitation of an offer to purchase the above-mentioned convertible bond or any other security of Südzucker AG and Südzucker International Finance BV.