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December 2011 - Crédit Agricole CIB assists Vallourec with two transactions: a new employee share ownership programme and a bond issue
For the sixth consecutive time, the Bank has assisted Vallourec with its "Value 11" employee share ownership plan.
This fourth international share subscription offer was a resounding success with the participation of nearly 15,000 employees in nine countries, 73% of Vallourec’s eligible staff. The proceeds from the rights issue amounted to EUR 84.4 million with 2,349,989 new shares issued at a unit subscription price of EUR 35.90. The nominal value of the issue came to EUR 4.7 million.
The offer brought the number of Vallourec shares in issue to 121,434,409 as of December 15, 2011.
On December 7, 2011, Crédit Agricole CIB acted as joint lead arranger and joint bookrunner for the issuance of Vallourec’s inaugural 5-year EUR 650 million bond with an annual coupon of 4.25%. BNP Paribas, JP Morgan Securities Ltd., Natixis and Société Générale were the other lead banks.
The issue was oversubscribed by a factor of more than six, resulting in an order book of EUR 4 billion. It attracted 348 investors, with a majority of asset managers (60%), followed by insurance companies and pension funds (25%) and banks (13%). A majority of these investors were based in France (52%), then in Germany and Austria (14%), the United Kingdom and Ireland (13%), and finally in Benelux and Switzerland (6%). The success of this transaction attests to the confidence of investors in Vallourec’s creditworthiness.
Proceeds from the issue will be used to meet the company’s general financing needs and enable it to increase its financial flexibility, extend the average duration of its debt and diversify its financial resources.
"Crédit Agricole CIB is proud to have assisted Vallourec in these important stages in its development by making our diversified and complementary skills available," comments Régis Leenhardt, Senior Banker.
Vallourec is the world leader in solutions for premium tubes intended mainly for energy markets as well as for other industrial applications. With 20,000 employees, integrated production units, leading-edge R&D and operations in more than 20 countries, Vallourec provides its clients with overall innovative solutions suited to the energy challenges of the 21st century.