FORVIA successfully prices a €1 billion euro bond

• Issuance of a dual-tranche senior bond of 5 and 7-year maturity

• Proceeds to be used to partially refinance 2025 and 2026 maturities by way of tender offers and other Group debts

FORVIA has successfully priced one billion euros in aggregate principal amount of senior notes consisting of €500 million 5.125% senior notes due 2029 and €500 million 5.50% senior notes due 2031.

Taking into consideration the interest rate pre-hedging arrangement executed in December 2023 and January 2024, the economic yield of the new notes for FORVIA amounts to 4.96% for the notes due 2029 and 5.37% for the notes due 2031 (on a non-IFRS basis).

Both tranches of the new senior notes obtained credit rating in line with the long-term credit rating of FORVIA (i.e. “BB+” by Fitch Ratings, “Ba2” by Moody’s and “BB” by Standard & Poor’s).

FORVIA intends to use the proceeds of the offering of the new notes to fund the repurchase of its 2.625% senior notes due 2025 and 7.250% sustainability-linked notes due 2026 accepted for purchase in tender offers, to repay certain outstanding indebtedness, and pay premiums and accrued interest in connection with those transactions.

The tender offers on the existing notes launched on 28 February 2024 remain subject to conditions, such as the completion of the offering of the new notes. The final amounts accepted in the tender offers will be subject to the final amounts of tenders received.  The results of the tender offers are expected to be published on the 7th of March.

These transactions allow the Group to efficiently manage its liabilities and extend its debt average maturity.

An application will be made to list the new notes on the official list of Euronext Dublin (Global Exchange Market). Settlements of the new notes and the tender offers on existing notes are expected to occur on 11 March 2024.