Rallye offers €200 million 5.25% non-dilutive cash-settled bonds exchangeable for Casino shares

By Stephanie N. Rotondo

Seattle, Oct. 19 – Rallye SA is selling €200 million of 5.25% non-dilutive cash-settled bonds due Feb. 1, 2022 that are exchangeable for ordinary shares of Casino, Guichard-Perrachon SA.

The initial exchange price will represent a 30% premium over the share reference price, according to a press release.

BNP Paribas and Credit Agricole CIB are the joint bookrunners.

The share reference price will be calculated by the 15-day average of the daily volume weighted average price for the Euronext-listed shares in Paris. The reference period begins Oct. 20 and is expected to conclude on or around Nov. 9.

The securities will be listed on the Frankfurt Stock Exchange.

Concurrently, Rallye is purchasing cash-settled call options to hedge the company’s economic exposure to the potential exercise of the exchange rights of the bonds.

It is also expected that hedge counterparties to the call options will enter into transactions to hedge their respective positions under the options through the sale, purchase of shares or any other transactions, on the market and off-market, at any time, and in particular during the reference period and at or around the exchange or redemption of the bonds.

Proceeds will be used for general corporate purposes, including the purchase of the call options.

Rallye is a Paris-based distributor of food and sports items. Casino is an affiliated company.

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