Royal Ahold (NYSE: AHO), the international food provider, today successfully placed new notes for a total of Euro 1.5 billion with a coupon of 6.375% and an effective interest rate of 6.466%. The notes are to mature in 2005 and will be listed on the exchanges of The Netherlands and Luxembourg.
Ahold has placed the notes pursuant to its Euro Medium Term Note (EMTN) program announced May 17, 2000. This program enables Ahold to issue various types of debt securities worth a total of Euro 3.0 billion.
Ahold Finance U.S.A., Inc., a 100% Ahold subsidiary, is issuing the new notes, which are unconditionally guaranteed by Royal Ahold.
Ahold will use the proceeds to refinance its recently completed acquisition of U.S. Foodservice in the United States and its 50% stake in The ICA Group in Scandinavia.
After exercising the green shoe option of its recent successful combined global offering of common shares and subordinated convertible notes, which generated total proceeds of Euro 3.7 billion, Ahold has now placed an additional amount of Euro 1.5 billion in new notes. With both offerings having generated a total of Euro 5.2 billion, the company’s current financing needs have been fully met. Ahold currently considers it unlikely that the company will return to the Euro bond market again this year.
ABN AMRO and Chase were the joint lead managers for the new note issue.
Royal Ahold press releases may contain `forward-looking’ statements. Actual results may differ from such statements as they may have been influenced by factors beyond the company’s ability to control.