Thales finalizes the financing of its proposed Gemalto acquisition

Thales (Euronext Paris: HO) successfully launched today a 2-tranche bond issue for a total amount of €1 billion. The key features of these bonds, issued under Thales’s €5 billion Euro Medium Term Note (EMTN) program, are as follows:

  • a 2-year €500 million tranche, at floating rate, with a 3-month EURIBOR +0.1% coupon
  • a 6-year €500 million tranche, at fixed rate, with a 0.875% coupon

The issue was well subscribed by a diversified investor base. The bonds will be listed on Euronext Paris.
With this transaction, the Group finalizes the financing of its proposed Gemalto acquisition, expected to be completed in the second half of 2018. The amounts raised will enable Thales to cancel the dedicated bridge credit agreement concluded in December 2017 to finance this acquisition.

The long term debt of Thales is rated A- (CreditWatch negative) by S&P Global Ratings and A2 (outlook: negative) by Moody’s.

The issue was managed by Société Générale (global coordinator), BNP Paribas, Crédit Agricole Corporate & Investment Bank, HSBC, JP Morgan, MUFG and Santander.