Safran announces the success of its offering of two-year floating rate notes (FRN) for an amount of 500 million euros
Not for release in or into the United States of America, Australia, Canada or Japan.
Paris, July 6, 2018
Safran (Euronext Paris: SAF) has launched and priced on July 5, 2018 an offering of two-year floating rate notes (FRN) for an amount of 500 million euros.
It will bear a coupon of 3 month Euribor + 33 basis points per annum (coupon floored at 0%) and will be issued at 100.00% of the nominal value.
The offering was oversubscribed 2.5 times at this level that doesn’t concede any new issue premium, showing the great confidence of investors in the strategy and the performance of Safran and its high credit standards.
Safran is unrated and has not requested a rating for this offering.
The settlement of the offering is expected to take place on July 13, 2018, once the prospectus has received the visa of the French Financial Market Authority (Autorité des Marchés financiers) (AMF).
The notes will then be admitted to trading on Euronext Paris.
The proceeds of the offering will be used for Safran’s general corporate purposes.
This offering of two-year floating rate notes complements the successful offering of approximately 700 million euros of zero-coupon OCEANEs due 2023 announced on June 18, 2018. Safran diversifies and secures this way its financing at historically low conditions and strengthens its smooth maturity debt profile.
Crédit Agricole Corporate and Investment Bank and Crédit Industriel et Commercial S.A. are the global coordinators of this FRN offering and, together with SMBC Nikko Capital Markets Limited, are Joint Lead Managers.
This press release is an advertisement and not a prospectus and not an offer of securities for sale to U.S. persons or in any jurisdiction, including in or into the United States, Canada, Japan or Australia.
The bonds will be offered only by way of private placement to institutional investors. The securities may not be offered or sold or otherwise made available to retail investors. No key information document under PRIIPS regulation has been and will be prepared.
Persons into whose possession any document or other information referred to herein comes, should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. Neither this press release nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction.
Safran is an international high-technology group, operating in the aircraft propulsion and equipment, space and defense markets. Safran has a global presence, with more than 58,000 employees and sales of 16.5 billion euros in 2017. Working alone or in partnership, Safran holds world or European leadership positions in its core markets. Safran undertakes Research & Development programs to meet fast-changing market requirements, with total R&D expenditures of around 1.4 billion euros in 2017. Safran is listed on the Euronext Paris stock exchange, and is part of the CAC 40 and Euro Stoxx 50 indices.
In February 2018, Safran took control of Zodiac Aerospace, significantly expanding its aircraft equipment activities. Together with Zodiac Aerospace, Safran has more than 91,000 employees and would have around €21 billion in adjusted revenue (pro forma 2016).
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