Delhaize equates modalities of bonds

Delhaize equates modalities of bonds

The Belgian Delhaize Group wants to equate some modalities of two long-term bonds, which were issued by subsidiary Delhaize America, with those of the bonds of the parent company. Owners of the bonds that agree to the offer, will get a bonus of fifteen dollar per thousand dollar in bonds.

250 million euro

The first bond has a coupon of 8.05% and ends in 2027, the second has a coupon of 9% and ends in 2031. Respectively 70.7 million dollar (about 50 million euro) and 271.4 million dollar (200 million euro) in bonds are currently outstanding.

 

The bonds were issued by Delhaize America in 2011 and served to pay for the takeover of the chain Hannaford. Since then Delhaize America has not entered into any new long-term loans. Delhaize instead chose to centralise them all on a group level.

 

First attempt in 2011

Because of this, parent company Delhaize already made an offer in 2011 on the bonds issued by Delhaize America and it proposed to convert them to ones of the parent company, with a day of payment in 2040 and a coupon of 5.7%. Back then not all investors agreed.

 

Now it wants to equate all modalities of the remaining bonds with those of the parent company. To persuade investors to take the offer, Delhaize is offering them a bonus of 15 dollar per bond of 1000 dollar. The core characteristics (issuer, due date and the coupon) will remain the same for those who make the transition.

 

Questions or comments? Please feel free to contact the editors


Zalando's growth once again surpasses 20 %

10/08/2017

German Zalando has achieved its 20 % growth target for the second quarter, but just barely. It still forecasts a 20 to 25 % growth for its full fiscal year.

Gucci files lawsuit against Forever 21

09/08/2017

Fashion label Gucci has decided to file a lawsuit against fashion chain Forever 21 in the United States. The case revolves around several pieces of clothing, all with a blue-red-blue or green-red-green ribbon. 

Ralph Lauren outperforms expectations

08/08/2017

Fashion label Ralph Lauren’s first quarter was a very good one, as it beat both analysts’ turnover and profit forecasts. It is quite a turnaround for a company that suffered a huge loss only a year ago.

Difficult first quarter for New Look

08/08/2017

British fashion chain New Look’s past quarter was disappointing with a 4 % turnover drop. Its adjusted EBITDA fared much worse, with a 35 % drop.

ING forced to pay Foot Locker compensation

07/08/2017

Dutch ING Bank will have to pay the Dutch and European Foot Locker branches 300,000 euro in damages. A court decided the fee after Foot Locker was scammed for 1.8 million euro in 2015.

Asics opens its largest store yet in London

04/08/2017

Sports brand Asics opened a new flagship store in London, which is also its largest store in the world. Located in Regent Street, the store will bring together its four labels for the first time ever.

Back to top