Orange thus sells approximately 1.33% of the share capital of BT for around GBP 383 million, corresponding to a selling price of 288 pence per share which represents a very tight discount of 0.59% on the closing price.
The exchangeable bonds, with a maturity of 4 years (except in the case of early redemption), will be issued on 27 June 2017 with an initial exercise price of 389 pence, corresponding to a premium of 35% on the selling price of shares part of the accelerated bookbuilding.
Issued in sterling, they will bear a coupon of 0.375%, corresponding to a negative interest rate of -0.50% after hedging in euro. An application will be made for their admission to trading on the Marché Libre d’Euronext Paris.
The exchangeable bonds holders may exercise their exchange right at any time from 7 August 2017 until the 55th calendar day before the maturity date of the bonds.
For their repayment, Orange will have the flexibility to settle in cash, deliver ordinary shares of BT or a combination thereof.
The proceeds of these transactions will be used for the general corporate purposes of Orange.
