Delhaize Group
BRUX : DELB
NYSE : DEG
BRUX : DELB.BR

October 05, 2011 02:14 ET

Delhaize Group Successfully Closes the Public Offering of 7-year Bonds for a Total Amount of EUR 400 Million

BRUSSELS, BELGIUM--(Marketwire - Oct 5, 2011) - - Delhaize Group (Euronext Brussels: DELB) (NYSE: DEG), the Belgian international food retailer, announced today that it successfully completed the public offering of its 7-year 4.250% retail bonds in Belgium and in the Grand Duchy of Luxembourg.

Due to the very strong demand, the maximum aggregate nominal amount offered of EUR 400 million has been entirely subscribed. As a consequence, the subscription period has been terminated early on October 4, 2011 at 6:00 pm (Brussels time), as agreed between the issuer and the Managers. The payment date is expected to be October 19, 2011.

Pierre-Olivier Beckers, President and Chief Executive Officer of Delhaize Group said: "We are extremely pleased with the positive reaction of the public to our retail bond issue, which shows the confidence of investors in our home market in the Delhaize brand. This successful bond offering will help us fund the continued implementation of our New Game Plan strategy as well as re- finance existing debt recently acquired as part of the Delta Maxi acquisition."

The Bonds will contain a change of control provision allowing their holders to require Delhaize Group to repurchase their Bonds in cash for an amount equal to 101% of the aggregate principal amount of Bonds repurchased plus accrued and unpaid interests thereon (if any) if (i) at the time Delhaize Group is not rated, an offer is made by a person to all shareholders of Delhaize Group to acquire all or a majority of the issued ordinary share capital of Delhaize Group and the offeror has acquired as a result of such offer, ordinary shares or other voting rights of Delhaize Group so that it holds more than 50% of the ordinary shares or other voting rights of Delhaize Group or a majority of the members of the board of directors of Delhaize Group are not so-called continuing directors (as described in the conditions of the Bonds) or (ii) at the time Delhaize Group is rated, both (A) an offer is made by a person to all shareholders of Delhaize Group to acquire all or a majority of the issued ordinary share capital of Delhaize Group and the offeror has acquired as a result of such offer, ordinary shares or other voting rights of Delhaize Group so that it holds more than 50% of the ordinary shares or other voting rights of Delhaize Group or a majority of the members of the board of directors of Delhaize Group are not so-called continuing directors and (B) within the period from the date of the occurrence of a change of control as described under (A) and 60 days after such date, there is a downgrade of the rating of Delhaize Group by two rating agencies. Other than the Bonds that will be issued in the Public Offer, no other bonds or notes have been issued by Delhaize Group that contain a change of control provision approved by the general meeting of shareholders dated 26 May 2011.

» Delhaize Group

Delhaize Group is a Belgian international food retailer present in eleven countries on three continents. At the end of the second quarter of 2011, Delhaize Group's sales network consisted of 2 842 stores. In 2010, Delhaize Group posted EUR 20.8 billion (USD 27.6 billion) in revenues and EUR 574 million (USD 762 million) in net profit (Group share). At the end of the second quarter of 2011, Delhaize Group employed approximately 143 000 people. Delhaize Group's stock is listed on NYSE Euronext Brussels (DELB) and the New York Stock Exchange (DEG).

This press release is available in English, French and Dutch. You can also find it on the website http://www.delhaizegroup.com. Questions can be sent to investor@delhaizegroup.com.

Press release in pdf format: http://hugin.info/133961/R/1552050/478141.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Delhaize Group via Thomson Reuters ONE

[HUG#1552050]

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