Glanbia Coop Exchangeable Bond successfully placed

RNS Number : 0772A

Glanbia PLC

02 June 2016

 

GLANBIA CO-OPERATIVE SOCIETY LIMITED - SUCCESSFULLY PRICED AND PLACED FIVE YEAR EXCHANGEABLE BOND LINKED TO GLANBIA PLC SHARES

2^nd June 2016

Glanbia plc,("Glanbia") the global nutrition group, has been informed by its largest shareholder, Glanbia Co-operative Society Limited (the "Society") that it has raised €100 million by the placement today of a five year exchangeable bond (the "Bond") linked to a pledge of approximately 4.3 million Glanbia shares which the Society owns.

In total the Society and its subsidiaries hold 108,014,900 ordinary shares in Glanbia.

The initial exchange price of the Bond was set at EUR 23.26, representing a premium of 40% to the volume weighted average price of Glanbia shares on the Irish Stock Exchange between launch and pricing earlier today.

The number of issued shares in Glanbia plc will not change as a result of this Bond placement.

The Society intends to use the majority of the proceeds from the Bond for the creation of a dynamic market volatility fund for its milk and grain supplying members (the "Members"). This fund will enable participating Members to draw down funds on an interest free basis when the market price for milk and grain falls below specific levels.  The Society will recover the funds drawn down when milk and grain prices exceed a higher price trigger. The remaining proceeds will be used for general business purposes.

Settlement of the Bond is expected to take place on or about 9 June 2016. The Society will be subject to a lock-up ending 90 days after the settlement Date.

For further information on the terms of the Bond refer to the announcements issued by the Society earlier today.

For further information contact:

Media

Mark Garrett, Director of Communications & Public Affairs : [phone]

Investors

Liam Hennigan, Head of Investor Relations : [phone]

ENDS

 

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