Akzo Nobel announces repurchase of 2014, 2015 bonds; loss of €67M from buyback to be offset by new €800M seven-year bond launched last week

AMSTERDAM , December 15, 2011 (press release) – AkzoNobel has today announced the results of its tender offer launched on 8 December 2011 to buy back a proportion of its bonds set to mature in January 2014 (7.75 percent, €1 billion) and March 2015 (7.25 percent, €975 million).

The tender was conducted on a public auction basis, and bonds with a total nominal amount in excess of €680 million were tendered by investors. AkzoNobel will accept bonds tendered at the most competitive level, for a total nominal amount of €528 million and a total consideration of €632.5 million. The accepted tenders are split as follows:

 

Nominal Amount

Total Consideration

January 2014 bonds

€175 million

€207 million

March 2015 bonds

€353 million

€425 million

Total

€528 million

€632.5 million


The buyback of company bonds results in an accounting loss estimated at €67 million. However, this loss will be off-set by the significantly reduced coupon on the new €800 million seven year bond launched last week.

Along with the new €800 million bond issue, the re-purchase of bonds will improve the overall debt profile of AkzoNobel, further reducing future refinancing risk and improving its maturity profile.

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