Lafarge tenders for Oceanes

New York, Nov. 21 - Lafarge said it has begun an offer to buy back its convertible bonds due Jan. 1, 2006 in the Oceanes structure.

The offer will run from Nov. 21 to Nov. 25 and will be made on the French market.

In the repurchase, Lafarge is offering a price based on the discounted future cash flows on the securities plus a premium. The premium will be the difference between the yield implied in the prices at which previous purchases were executed and the interpolated Euribor curve, minus 2 basis points. Future cash flows will be discounted at a rate to maturity interpolated from one- and two-month Euribor. Settlement will be based on the date of purchase plus two working days.

Lafarge originally issued €1.3 billion of the Oceanes in June 2001 but has since repurchased 29.6% of the issue in off-market transactions. The tender offer is intended to make available to all holders the prices available in the off-market buybacks over the past 12 months.

Dresdner Kleinwort Wasserstein is running the offer.

Lafarge is a Paris, France-based building materials company.

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