Capgemini buys tenders for €574 million 1.75% bonds via upsized issue

By Susanna Moon

Chicago, April 11 – Capgemini SA said it is purchasing €574 million principal amount of its €1.25 billion of 1.75% bonds due July 1, 2020.

The total cash payment will be €597 million, excluding accrued interest, according to a company announcement.

The tender offer ended at 10 a.m. ET on April 10.

As announced April 3 the company was originally offering to purchase up to €500 million of the 1.75% bonds using proceeds of a new issue.

The company had planned to price €500 million of 6.5-year senior notes and €500 million of 10-year senior notes.

Capgemini then priced on April 3 an upsized €600 million of 1% 6.5-year notes and €500 million 1.75% 10-year notes, the release noted.

The company plans to exchange some or all of the 2024 bonds with the 2020 bonds acquired by BNP Paribas through the tender offer, according to a previous company announcement.

Proceeds from the 2028 bonds and any remaining from the 2024 bonds will be used for general corporate purposes, including the redemption of the €500 million of bonds due July 2, 2018.

“Through these transactions, which will have no significant impact on the total amount of the group's debt, Capgemini intends to take advantage of current attractive market conditions to proactively manage its debt maturity profile,” the release noted.

The issuer is a Paris-based consulting and outsourcing company.

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