23 March 2005
Rights issue proceeds to be applied towards partial high yield bond redemption
The EUR 270 million rights issue of HeidelbergCement AG has closed successfully and will settle today. The Managing Board of HeidelbergCement AG has resolved that the net proceeds of this rights issue will be applied by HeidelbergCement to redeem 35% of the outstanding principal amount of the EUR 700 million 7,375% HeidelbergCement Finance BV senior notes due 2010 (ISIN XS 0172006156 (Reg. S) and ISIN XS 0172006313 (s. 144a)).
This so-called equity clawback of these senior notes will be settled at the contractually stipulated redemption price of 107.375%, leading to a cash payment to senior note investors of some EUR 263 million plus accrued unpaid interest. The redemption date will be fixed by HeidelbergCement in formal notices of redemption which will include all pertinent details and will be published in due course.
HeidelbergCement sees the equity clawback as a pro-active liability management step which will improve the Group’s credit metrics, financial flexibility and financing structure.