Olivier Jacquet (OJ): Saint-Gobain wanted to strengthen its balance sheet. Increasing the capital automatically reduces leverage by increasing equity, giving the company greater financial flexibility. This solid financial structure enables the company to keep within the strong investment grade category.

OJ: First of all, the transaction was not anticipated by the market. It was prepared and announced in a very short time, which enabled Saint-Gobain to come out early in the year when there were few issuers on the market. Thanks to marketing through road shows, investors understood the rationale behind this transaction once the surprise effect was past, and subscribed massively.
Another important feature of this capital increase was the role played by Calyon relative to the main shareholder, Wendel, in a partial reclassification of its subscription rights. It is rare for a bank to act on behalf of both the issuer and the main shareholder. In the end, the interests of both parties were satisfactorily met under good conditions.

Régis Leenhardt (RL): We have had commercial relations with Saint-Gobain for many years. Our Equity Capital Markets expertise and our close relationship with the client were the reasons why we won this mandate. In addition, thanks to our excellent knowledge of the company, we were able to provide a response to their needs at the right time. Prior to the deal, the Calyon client team gave a great deal of thought to Saint-Gobain’s financing needs which fed their own analysis.

RL: Executing this kind of transaction brings us closer to the individuals with whom we deal, and this should enable us to win new mandates. This transaction offers a good, visible example of Calyon’s multiple-business-line skills in the market.
In addition, it will earn Calyon a good position in the Equity Capital Markets rankings for 2009.