Linklaters LLP advised the joint bookrunners in connection with the issue by Arkema of its €700 million undated deeply subordinated notes bearing interest at a fixed rate of 4.75% per annum until 2020, then at a fixed rate calculated every five years on the basis of the 5-year swap rate.
The use of proceeds of the issue will be recorded as “equity” in the IFRS consolidated financial statements of Arkema. In addition, Standard & Poor’s and Moody’s rating agencies will apply a 50% equity content to the issue proceeds, for the purpose of Arkema’s credit ratios. The notes were listed on Euronext Paris.
The issuance is the first stage of the financing of the proposed acquisition of Bostik by Arkema. It has seen strong investor interest, with an order book above €2 billion.
Linklaters LLP advised Natixis as structuring advisor, global coordinator and joint bookrunner and BNP Paribas, Citigroup, Crédit Agricole CIB and Société Générale Corporate & Investment Banking as joint bookrunners, with partner Véronique Delaittre, assisted by associates, Pierre-André Destrée and Clément Moine. Partner Thomas Perrot and associate Alexandra Mourlon were also involved on tax aspects of the transaction.
Herbert Smith Freehills Paris LLP advised Arkema. The team was led by partner Louis de Longeaux, assisted by associates, Christelle Salmon-Lataste and Gwenaël Pain-Blavec. Jérôme le Berre was also involved on tax aspects of the transaction.
Source: www.linklaters.com
