Settlement of Euro 140 million equity linked notes due 2024 and of the repurchase of Euro 130 million 4.50% equity linked notes due 2019

NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW.

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Astaldi S.p.A. (the “Company”) announces the closing and settlement of the issue of senior unsecured equity linked notes with 7 year maturity due in 2024 (the “New Notes”) took place.

With reference to the reverse bookbuilding of the Company’s outstanding Euro 130 million 4.50% 2019 equity linked notes (the “2019 Equity Linked Notes”), the Company also confirms the occurred settlement of the repurchase of approximately 86.8% of the 2019 Equity Linked Notes, with an the aggregate principal amount equal to Euro 112.9 million. The holders of 2019 Equity Linked Notes received a cash consideration of 106.5% of the principal amount per 2019 Equity Linked Note, together with interest accrued and not paid at the settlement date of the repurchase.

Features of the New Notes

The New Notes have a principal amount of Euro 100,000, they will bear interest payable quarterly in arrear at a fixed rate of 4.875% per annum payable in equal instalments on 21 March, 21 June, 21 September and 21 December each year and they have been issued for an aggregate principal amount of Euro 140 million. The first interest payment date will be September 21, 2017.

The conversion price for the New Notes was set at Euro 7.8416, representing a premium of 35% to the volume weighted average price (the “VWAP”) of the Company's ordinary shares (the “Shares”) on the Mercato Telematico Azionario of Borsa Italiana S.p.A between opening and closing of the market on 14 June 2017.

The Board of Directors of Astaldi will convene an Extraordinary General Meeting (“EGM”), to be held no later than 21 December 2017, to approve a dedicated capital increase for the issue of new Shares, with exclusion of shareholders’ pre-emption rights, pursuant to Article 2441, paragraph 5, of the Italian Civil Code to serve as underlying to the New Notes (the “Capital Increase”).

Following the approval of the Capital Increase, the relevant holders of the New Notes will have the right at any time to convert their New Notes into Shares, starting from the date indicated in a specific notice concerning the registration of the relevant resolution with the Companies’ Register, provided that such date may not fall later than the tenth exchange business day following such notice. Any conversion may also be satisfied at the Company’s option by a payment in cash or in a combination of Shares and cash.

Additionally, the Company shall be entitled to redeem all the New Notes from 6 July 2021 in accordance with the terms and conditions if over a certain period of time the VWAP of the Shares exceeds Euro 130,000.

An application for the listing of the New Notes will be made by the Company on the Third Market of the Vienna Stock Exchange.

Repurchase of the 2019 Equity Linked Notes

2019 Equity Linked Notes repurchased and settled by the Company pursuant to a reverse book building process (the “Repurchase”) will be cancelled in accordance with their terms and conditions.

Pursuant to the conditions of the 2019 Equity Linked Notes, given that less than 15% in principal amount of the 2019 Equity Linked Notes originally issued remains outstanding following the settlement of the Repurchase, the Company will exercise the right to early redeem the outstanding 2019 Equity Linked Notes not tendered in the Repurchase in whole but not in part at their principal amount, together with accrued and unpaid interest to such date; the outstanding 2019 Equity Linked Notes will be redeemed on September 15, 2017.

 

BNP PARIBAS S.A., HSBC Bank plc and UniCredit Bank AG, Milan Branch acted as Joint Global Coordinators and Joint Bookrunners.

Chiomenti advised Astaldi as legal advisor of the issuer, Linklaters LLP advised the Joint Global Coordinators and Joint Bookrunners.

 

IMPORTANT NOTICE:

 

This press release is published for information purposes only and shall not be meant to be an investment proposal and, in any case, it may not be used as or deemed to be a sale offer or an invitation to offer or purchase or sell securities to the public.

No communication and no information in respect of the offering of the New Notes or the Repurchase may be distributed to the public in any jurisdiction where a registration or approval is required.

This press release does not constitute an invitation to participate in the repurchase of the 2019 Equity Linked Notes from any jurisdiction in or from which, or to or from any person to or from whom, it is unlawful to make such an invitation under applicable laws and regulations. In particular, the Repurchase is not and will not be directed to the United States in any manner. Persons into whose possession this press release comes are required to inform themselves about, and to observe, any such legal or regulatory restrictions.

Neither this document nor any other documents or materials relating to the offering of the New Notes and/or to the Repurchase has been or will be submitted to the clearance procedure of the Commissione Nazionale per le Società e la Borsa ("CONSOB"). Accordingly, no New Notes may be offered, sold or delivered, nor may this document or any other materials relating to the New Notes be distributed in the Republic of Italy, except (i) to qualified investors (investitori qualificati) (the “Italian Qualified Investors”), as defined pursuant to Article 100 of Legislative Decree No. 58 of 24 February 1998, as amended (the “Financial Services Act”) and Article 34-ter, first paragraph, letter b) of CONSOB Regulation No. 11971 of 14 May 1999 (as amended from time to time) (“Regulation No. 11971”); or (ii) in other circumstances which are exempted from the rules on public offerings pursuant to Article 100 of the Financial Services Act and Regulation No. 11971. Moreover, the Repurchase is being carried out in the Republic of Italy as an exempted offer pursuant to article 101-bis, paragraph 3-bis of the Financial Services Act and article 35-bis, paragraph 3 of Regulation No. 11971.

 

Any offer, sale or delivery of the New Notes and/or the Repurchase in Italy must be made through authorised persons (such as investment firms, banks or financial intermediaries permitted to conduct such activities in Italy in accordance with the Financial Services Act, CONSOB Regulation No. 16190 of 29 October 2007, as amended from time to time, and Legislative Decree No. 385 of September 1, 1993, as amended) and in compliance with applicable laws and regulations or with requirements imposed by CONSOB or any other Italian authority. Each intermediary must comply with the applicable laws and regulations concerning information duties vis-à-vis its clients in connection with the Repurchase.

 

This press release shall not be distributed, whether directly or indirectly, in the United States (as defined in Regulation S contained in the United States Securities Act of 1933, as subsequently amended - the “Securities Act”), in Canada, Australia, Japan, South Africa or in any other country where the offer or the sale would be forbidden by the law.

 

This press release is not, and is not part of, an offer for sale of securities to the public or a solicitation to purchase or sell securities, and there will be no offer of securities or solicitation to sell or purchase securities in any jurisdiction where such offer or solicitation would be forbidden by the law.

 

This press release does not constitute an offer of securities for sale in the United States, nor may the securities be offered or sold in the United States absent registration or an exemption from registration as provided in Securities Act, and the rules and regulations thereunder. There is no intention to register any portion of the offering of the New Notes or the Shares in the United States or to conduct a public offering of securities in the United States. The New Notes will only be offered for sale outside of the United States in an offshore transaction in reliance on Regulation S under the Securities Act.

 

The Repurchase is not being carried out and will not be carried out, directly or indirectly, in, or by use of the mails of, or by any means or instrumentality of interstate or foreign commerce of, or of any facilities of a national securities exchange of, the United States. This includes, but is not limited to, facsimile transmission, electronic mail, telex, telephone, the internet and other forms of electronic communication.

 

Accordingly, this press release and any other documents or materials relating to the New Notes and/or the Repurchase are not being, and must not be, directly or indirectly mailed or otherwise given, distributed or sent (including, without limitation, by depositaries, delegated persons and trustees) to or from the United States or to or from any other country in which such mailing would be forbidden, or to publications with wide circulation within such countries, and the recipients of such press release and any other documents or materials relating to the New Notes and/or the Repurchase (including, without limitation any depositaries, delegated persons and trustees) shall refrain from mailing or otherwise forwarding, distributing or mailing the press release and any other documents or materials relating to the New Notes and/or the Repurchase to or from the United States or to or from any other country where such sending would be forbidden, or to publications with a general circulation within such countries. Any purported repurchase of 2019 Equity Linked Notes by the Company pursuant to the Repurchase resulting directly or indirectly from a violation of these restrictions will be invalid. 

 

In connection with the offering of the New Notes and the Repurchase, each of BNP Paribas, HSBC Bank plc and UniCredit Bank AG, Milan Branch (together the "Joint Bookrunners") and their respective affiliates, acting as investors for their own account, may subscribe the New Notes or Shares of the Company or sell the 2019 Equity Linked Notes and for such reason hold in their portfolios, purchase or sell such securities or any security of the Company or make any related investment; furthermore, they may also offer or sell such securities or make investments other than in the context of the offering of the New Notes or the Repurchase. The Joint Bookrunners do not intend to disclose the amount of such investments or transactions other than to the extent required by the applicable laws and regulations.

 

The Joint Bookrunners are acting on behalf of the Company and no one else in connection with the New Notes and the 2019 Equity Linked Notes, and will not be responsible to any other person for providing the protections afforded to clients of the Joint Bookrunners, or for providing advice given in relation to the New Notes and the 2019 Equity Linked Notes. None of the Joint Bookrunners or any of their respective directors, officers, employees, advisers or agents accepts any responsibility or liability whatsoever for or makes any representation or warranty, express or implied, as to the truth, accuracy or completeness of the information in this press release (or whether any information has been omitted from the press release) or any other information relating to the Company, its subsidiaries or associated companies, or for any loss howsoever arising from any use of this press release or its contents or otherwise arising in connection therewith.

 

No action has been taken by the Company, the Joint Bookrunners or any of their respective affiliates that would permit an offering of the New Notes or possession or distribution of this press release or any publicity material relating to the New Notes or the Repurchase in any jurisdiction where action for such purposes is required. Persons into whose possession this press release comes are required to inform themselves about and to observe any such restrictions.

 

This press release, the offering of the New Notes and the invitation to holders of the 2019 Equity Linked Notes to offer to sell their notes in the Repurchase, once made, are only addressed to and directed, in Member States of the European Economic Area which have implemented Directive 2003/71/EC, amended, as the case may be, by Directive 2010/73/EU (the “Prospectus Directive”) (each of them, a “Relevant Member State), at persons who are “qualified investors” within the meaning of article 2(1)(e) of the Prospectus Directive and pursuant to the relevant implementing rules and regulations adopted by each relevant member state (the “Qualified Investors”).

 

Each initial purchaser of the New Notes or each person to whom the offer may be addressed as well as each investor who wishes to sell the 2019 Equity Linked Notes will be deemed to have represented, acknowledged and agreed that it is a Qualified Investor as defined above.

 

In addition, the communication of this press release and any other documents or materials relating to the New Notes and/or the Repurchase are not being made, and such documents and/or materials have not been and/or will not be approved, by an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000. Accordingly, such documents and/or materials are not being distributed to, and must not be passed on to, the general public in the United Kingdom. In the United Kingdom this press release and any other documents or materials relating to the New Notes and/or the Repurchase are being distributed only to, and are directed only at, (1) Qualified Investors: (i) who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (ii) who fall within article 49, paragraphs 2(a) to (d) of the Order, (2) those persons who are existing members or creditors of the Company or other persons within Article 43 of the Order, and (3) those persons to whom this press release and such other documents or materials may otherwise be lawfully communicated (all such persons together being referred to as “Relevant Persons”). This press release must not be acted or relied on: (i) in the United Kingdom, by persons who are not Relevant Persons, and (ii) in any Member State of the European Economic Area other than the United Kingdom, by persons who are not Qualified Investors.

 

Should the offering of the New Notes be addressed to an investor in its capacity as a financial intermediary as that term is used in article 3(2) of the Prospectus Directive, such investor shall be deemed to have represented and agreed that the securities acquired by it in the Offering have not been acquired (or sold) on behalf of any persons in the European Economic Area other than Qualified Investors, or persons in the United Kingdom or other Member States (where equivalent legislation exists) for whom such investor has authority to make decisions on a wholly discretionary basis, nor have the securities been acquired with a view to their offer or resale in the European Economic Area where this would result in a requirement for publication by the Company, the Joint Bookrunners or other manager of a prospectus pursuant to article 3 of the Prospectus Directive.

 

Furthermore, the Repurchase is not being carried out, directly or indirectly, to the public in the Republic of France ("France"). Neither this press release nor any other documents or materials relating to the Repurchase have been or shall be distributed to the public in France and only (i) providers of investment services relating to portfolio management for the account of third parties (personnes fournissant le service d'investissement de gestion de portefeuille pour compte de tiers) and/or (ii) qualified investors (investisseurs qualifiés) other than individuals, in each case acting on their own account and all as defined in, and in accordance with, Articles L.411-1, L.411-2 and D.411-1 of the French Code Monétaire et Financier, are eligible to place indications of interest to sell their 2019 Equity Linked Notes as part of the Repurchase. This press release and any other document or material relating to the Repurchase have not been and will not be submitted for clearance to nor approved by the Autorité des marchés financiers.

 

Moreover, neither this press release nor any other documents or materials relating to the Repurchase have been submitted to or will be submitted for approval or recognition to the Belgian Financial Services and Markets Authority and, accordingly, the Repurchase may not be carried out in Belgium by way of a public offering, as defined in Articles 3 and 6 of the Belgian Law of 1 April 2007 on public takeover bids (the "Belgian Takeover Law") or as defined in Article 3 of the Belgian Law of 16 June 2006 on the public offer of placement instruments and the admission to trading of placement instruments on regulated markets (the "Belgian Prospectus Law"), both as amended or replaced from time to time. Accordingly, the Repurchase may not be advertised and the Repurchase will not be extended, and neither this press release nor any other documents or materials relating to the Repurchase has been or shall be distributed or made available, directly or indirectly, to any person in Belgium other than (i) to persons which are "qualified investors" in the sense of Article 10 of the Belgian Prospectus Law, acting on their own account; or (ii) in any other circumstances set out in Article 6, §4 of the Belgian Takeover Law and Article 3, §4 of the Belgian Prospectus Law. This press release has been issued only for the personal use of the above qualified investors and exclusively for the purpose of the Repurchase. Accordingly, the information contained in this press release may not be used for any other purpose or disclosed to any other person in Belgium.

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Last updated: Jun 23 2017