Almost unanimous decision to convert $968-million 2007 bonds
Zurich, Switzerland, May 9, 2006 – ABB, the leading power and automation group, said today that approximately 98 percent of the holders of the company’s $968-million 4.625-percent convertible bonds due in 2007 have agreed to accept a cash payment to convert their bonds and receive ABB American Depositary Shares (ADSs).
In addition, ABB will today exercise its right under the terms of the bonds to call the remainder of the 2007 convertible debt, expected to result in full conversion.
The measure, launched on April 27 2006 and closed on May 4 2006, was taken to strengthen ABB’s equity base and further reduce debt.
“We are very pleased with the near-unanimous acceptance of this offer,” said Michel Demaré, ABB’s chief financial officer. “The move will significantly strengthen our balance sheet and marks another step forward in the execution of our financial strategy.”
The bond conversion is expected to result in the delivery of approximately 107 million ADSs and increase the number of issued ABB Ltd shares by around 5 percent.
The cash payment due to bondholders will be made on May 11, 2006.
Further pricing details and other information on the transaction is available at www.ABBbond.com.
Barclays Bank PLC, Deutsche Bank AG and HSBC Bank plc are acting as Dealer Managers of the offer. Acting as Co-Dealer Managers are Citigroup, Dresdner Bank AG and KBC Financial Products.
ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 105,000 people.