Press Release

White & Case Advises Michelin on US$100 Million Tap Non-Dilutive Convertible Bond Issue

Global law firm White & Case LLP has advised Michelin on its US$100 million offering of non-dilutive convertible bonds due 2022, redeemable in cash only, to be assimilated to the non-dilutive convertible bonds issued on January 10, 2017.

The bonds, issued by Compagnie Générale des Etablissements Michelin, will not bear interest and the net proceeds of the issuance will be used for Michelin’s general corporate purposes.

Michelin purchased cash-settled call options to hedge its economic exposure to the potential exercise of the conversion rights embedded in the bonds. Since they will only be cash-settled, the bonds will not result in the issuance of new shares or the delivery of existing shares of Michelin upon conversion.

The bonds, which will be admitted to trading on the Open Market (Marché Libre) of Euronext Paris, have been offered via an accelerated bookbuilding process through a private placement to institutional investors only, outside the US, Australia, Canada and Japan.

The bank syndicate comprised BNP Paribas, Crédit Agricole Corporate and Investment Bank and Natixis, as Joint Lead Managers and Joint Bookrunners.

The White & Case team in Paris which advised on the transaction was led by partners Thomas Le Vert and Séverin Robillard, with support from counsel Elsa Imbernon and associates Boris Kreiss and Adélaïde de Guitaut.

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