Danone Launches Bond Issue to Finance WhiteWave Acquisition

26 Oct 2016 --- Danone have announced the launch of a €6.2 billion ($6.7 billion) multi-tranche bond issue. The €6.2 billion raised will enable Danone to finance part of the acquisition of The WhiteWave Foods Company and to reduce the amount of the bridge loan that was contracted in July 2016 from its main banks, after settlement of the bond issue. 

The bond issue, realized under Danone’s Euro Medium Term Note (EMTN) program, is structured in 5 tranches: 

• a 2-year tranche of 1.35 billion euros, at a floating coupon of 3 month Euribor +0.15%
• a 4-year tranche of 1 billion euros, at a fixed rate priced at mid-swap +0.28% (coupon of 0.167%) 
• a 6-year tranche of 1 billion euros, at a fixed rate priced at mid-swap +0.40% (coupon of 0.424%)
• a 8-year tranche of 1.25 billion euros, at a fixed rate priced at mid-swap +0.50% (coupon of 0.709%) 
• a 12-year tranche of 1.6 billion euros, at a fixed rate priced at mid-swap +0.65% (coupon of 1.208%)

The settlement is expected to take place on November 3, 2016. 
 
This bond issue was widely subscribed by a diversified investor base. The bonds will be listed on Euronext Paris.