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NORSK HYDRO ASA RESULTS OF GBP AND EUR DEBT TENDER OFFERS
19 November 2004 - Hydro Aluminium
| On November 3, 2004, Norsk Hydro ASA announced a tender offer to purchase for cash certain of its outstanding bonds in USD, EUR and GBP, and the results from the USD tender offer were announced on November 15. |
The offer to purchase the GBP and EUR loans expired November 18, 2004, and priced at 2 PM CET today, with the following result: Of a total of GBP 225 million and EUR 400 million original principal amount outstanding on bonds tendered, a total of approximately GBP 204 million and EUR 100 million were accepted in the tender offer. The bonds accepted to be purchased in the tender offer are booked at par value in Norsk Hydro ASA’s books. However, the market value is higher than the nominal value since the coupons (6,5% and 6,25%) on the existing bonds are higher than the current market rates for similar debt. The repurchase of the GBP and EUR bonds will thus result in a loss of approximately NOK 430 million in Norsk Hydro ASA’s accounts. This accounting loss will be charged as a financial expense in the fourth quarter accounts, and is tax deductible based on the 28% corporate tax rate. With this announcement, the tender offer from Norsk Hydro ASA to purchase some of its outstanding bonds for cash, announced November 3, 2004, is completed.
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