Saint-Gobain: Successful Bond Exchange and Bond Buyback

COURBEVOIE, France, September 29, 2010 /PRNewswire-FirstCall/ -- Compagnie de Saint-Gobain has successfully placed EUR750 million worth of 4.00% bonds due 2018. The issue proceeds will be used to refinance EUR634 million in outstanding bonds maturing in 2013 and 2014 (with coupons ranging from 6.00% to 8.25%). In addition, to optimize use of cash reserves, Saint-Gobain will buy back EUR323 million worth of 4.25% bonds due 2011.

These transactions will enable Saint-Gobain to extend and smooth its bond debt maturity profile, by reducing the 2013 and 2014 maturities by EUR320 million and EUR314 million respectively and substituting a new EUR750 million maturity in 2018. They will also reduce the average cost of the Group's debt.

    The transactions are being carried out as follows:

    - Compagnie de Saint-Gobain today placed EUR750 million worth of 4.00%
    bonds due October 2018. The new issue attracted considerable
    investor interest, with the order book reaching more than EUR2 billion in
    the space of one hour, allowing the transaction to be finalized very
    quickly on attractive terms.

    - BNP Paribas today concluded the buyback offer launched on September
    22, 2010 for Saint-Gobain 4.25% bonds due May 2011 (EUR1,100 million
    nominal amount), 6.00% bonds due May 2013 (EUR750 million nominal
    amount), 7.25% bonds due September 2013 (EUR750 million nominal amount)
    and 8.25% bonds due July 2014 (EUR1,000 million nominal amount).
    Investors responded favorably by tendering an average of nearly 27% of
    the issues to the offer.

    - Compagnie de Saint-Gobain will deliver to BNP Paribas the latest bond
    issue plus a cash sum in settlement of the bonds bought back by
    the bank.

The success of this transaction is a further demonstration of bond investors' confidence in the credit quality of Saint-Gobain, whose long-term debt issues are rated BBB by Standard & Poor's and Baa2 by Moody's.

BNP Paribas (global coordinator and lead structuring advisor), JP Morgan (structuring advisor), Citi, HSBC, The Royal Bank of Scotland and Societe Generale CIB acted as lead managers for this transaction.

About Saint-Gobain

Saint-Gobain, a worldwide leader in the habit and construction markets, designs, manufactures and distributes building materials, providing innovative solutions in expanding emerging markets and in the buoyant energy efficiency and environmental protection segments. With EUR37.8 billion of sales in 2009, Saint-Gobain is present in 64 countries and employs over 190,000 people.

    Press relations

    Sophie CHEVALLON +33-1-47-62-30-48

    Analyst/Investor relations

    Florence TRIOU-TEIXERA +33-1-47-62-45-19
    Etienne HUMBERT +33-1-47-62-30-49
    Vivien DARDEL +33-1-47-62-44-29

SOURCE Saint-Gobain