Metso offers longer maturity debt in exchange for 6¼% notes

New York, Oct. 29 - Metso Corp. announced it is offering new bonds with a later maturity in an exchange for its existing 6¼% eurobonds due 2006.

The Helsinki, Finland-supplier of process industry machinery said the transaction will further reduce its refinancing requirements for 2006 and offer investors the chance to stay invested in the credit.

Metso is now offering new euro-denominated fixed-rate notes due 2011.

Currently there is €412 million of the 6¼% notes outstanding.

Pricing of the exchange will be based on a spread of 50 to 60 basis points over the 4.5% OBL due Aug. 18, 2006.

Initial price communication for the new notes will start on Nov. 3 with the final spreads being fixed on Nov. 8.

The exchange expires at 3 p.m. CET on Nov. 11 and pricing is at 1 p.m. CET on Nov. 12. Settlement is scheduled for Nov. 19.

The exchange is subject to at least €175 million of the existing notes being accepted.

Metso said it may also issue additional new notes for cash. It is aiming at a size of €250 million for the new bond.

Deutsche Bank (liability manager group +44 20 7545 8011) and Merrill Lynch (liability manager group +44 20 7995 3715) are dealer managers with Citibank, Nordea and Skandinaviska Enskilda Banken as co-dealer managers. Citibank is exchange agent.

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