Vivendi Enters Into Structured Financing Agreements to Cover the Potential Redemption of Its Bonds
September 27 2024 - 11:31AM
Business Wire
Regulatory News:
Vivendi (Paris:VIV) has entered today into financing agreements
to cover the potential redemption of its outstanding bond debt
should the Group’s split project, which feasibility study was
announced on September 13, 2023, be pursued and approved at an
extraordinary general meeting of its shareholders.
Bilateral structured financing agreements involving purely
cash-settled derivatives on a portion of Vivendi’s Universal Music
Group (UMG) shares have been entered into with five banks for a
nominal value of €2 billion. These agreements will benefit from
pledges on shares held by Vivendi in UMG, Telefonica, Telecom
Italia and MediaForEurope and may be subject to margin calls.
These financing agreements, maturing in September 2026 and
extendable by one year, would provide Vivendi with the funds to
redeem all its outstanding bond debt, in accordance with the terms
and conditions of the relevant bonds, as soon as possible following
the approval of the split project by the extraordinary general
meeting of its shareholders and, in any event, before the effective
date of the split up of the Group.
The first utilization of the proceeds under these bilateral
structured financing agreements would require, as a condition
precedent, the cancellation of all available commitments under
Vivendi’s syndicated revolving facility agreement and its eight
bilateral revolving facility agreements.
The information and consultation procedures of the employee
representative bodies of the concerned Group entities about the
split project are still ongoing (cf. Vivendi’s July 22, 2024 press
release). It should be noted that at this stage, and according to
applicable law, no decision to carry out this project has been or
can be taken, and that no further action, even potential, can be
presumed with regard to this project.
Should this project go ahead following the information and
consultation procedure, a decision could be taken at the end of
October 2024 with a view to submitting it to an extraordinary
general meeting of shareholders which could be held in December
2024. In such a case, this transaction would still require the
approval by a two-thirds majority of shareholder votes.
About Vivendi
Vivendi is a global leader in content, media and communications.
Canal+ Group is a major player in the creation and distribution of
cinema and audiovisual content on all continents. With Lagardère,
Vivendi is the world’s third-largest book publisher for the general
public and educational markets, and a leading global player in
travel retail. Havas is one of the largest global communications
groups with a presence in more than 100 countries. Vivendi is also
active in the magazine business (Prisma Media) and in video games
(Gameloft). As a committed group, Vivendi contributes to building
more open, inclusive, and responsible societies by supporting
diverse and inventive creative works, promoting broader access to
culture, education, and its industries, and increasing awareness of
21st century challenges and opportunities. In December 2023,
Vivendi launched the study of a split project where Canal+, Havas
and Louis Hachette Group, the company grouping the assets in
publishing and distribution, would become independent entities
listed on the stock market. www.vivendi.com.
Important disclaimers
This press release contains information that may have
characterized, before becoming public, inside information as
defined by Article 7(1) of Regulation (EU) No 596/2014 of April 16,
2014, on market abuse, as amended. It also contains forward
-looking statements with respect to Vivendi’s financial condition,
results of operations, business, strategy, plans and outlook,
including the impact of certain transactions such as the split and
listing projects, as well as related operations. Although Vivendi
believes that such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of
completion of the split and listing projects nor of Vivendi’s
future performance. Actual results may differ materially from the
forward-looking statements as a result of a number of risks and
uncertainties, many of which are outside our control, including,
but not limited to, the risks related to obtaining regulatory,
administrative, third - party or any other approvals, and the risks
described in the documents of the Group filed by Vivendi with the
Autorité des Marchés Financiers (the French securities regulator),
which are also available in English on Vivendi’s website
(www.vivendi.com). Investors and security holders may obtain a free
copy of documents filed by Vivendi with the Autorité des Marchés
Financiers at www.amf-france.org, or directly from Vivendi.
Accordingly, we caution readers against relying on such
forward-looking statements. These forward-looking statements are
made as of the date of this press release. Vivendi disclaims any
intention or obligation to provide, update or revise any forward-
looking statements, whether as a result of new information, future
events or otherwise. This press release does not contain or
constitute an offer of securities or a solicitation of an offer to
subscribe to or purchase, nor an invitation to sell, buy, or
subscribe to securities in France or abroad. This press release
must in no way be interpreted as a recommendation to readers.
The dissemination of this press release may be restricted,
limited, or prohibited by law in certain states, and anyone wishing
to distribute it must inform themselves about the existence of such
restrictions, limitations, or prohibitions, and adhere to them. Any
failure to do so may constitute a violation of the applicable
securities regulations in those states.
Unsponsored ADRs. Vivendi does not sponsor an American
Depositary Receipt (ADR) facility in respect of its shares. Any ADR
facility currently in existence is “unsponsored” and has no ties
whatsoever to Vivendi. Vivendi disclaims any liability in respect
of any such facility.
This document has been certified by Vivendi SE using the
blockchain and Nodle Connecting SDK’s Click solution to ensure its
authenticity. View this certificate of authenticity by logging in
to https://www.certification.vivendi.com or using a blockchain
explorer such as https://etherscan.io or
https://www.blockchain.com.
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