White & Case Advises Michelin on US$600 Million Non-Dilutive Convertible Bond Offering

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Global law firm White & Case LLP has advised Michelin on its US$600 million offering of non-dilutive convertible bonds due 2023, redeemable in cash only.

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 and to purchase options related to the transaction.

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 Euronext Access market in 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 Société Générale Corporate and Investment Bank, as Global Coordinator, Joint Lead Manager and Joint Bookrunner, as well as BNP Paribas, HSBC and JP Morgan as Joint Lead Managers and Joint Bookrunners.

In January 2017, White & Case advised Michelin on its first US$500 million offering of non-dilutive convertible bonds due 2022.

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

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