Zaandam, the Netherlands, November 15, 2016 – Ahold Delhaize announces the buy-back and cancellation of the entire principal amount of its ¥33 billion Floating Rate Notes due May 2031 (ISIN: XS0128778460) (the “JPY Notes”). The associated Yen-Euro currency swap will be unwound as part of the transaction. Together, the JPY Notes and the swap effectively represent a synthetic €299 million long-term liability at an annual interest rate of 7.065%.
Ahold Delhaize has agreed to buy back the JPY Notes at a purchase price of 108.1% for settlement on November 15, 2016. Cancellation of the JPY Notes shall take place on the same day. The cost of buying back the JPY Notes and unwinding the swap will be funded with cash on hand and shall be reflected in Ahold Delhaize’s Q4 2016 results as a corresponding one-off cost of €243 million before tax.
The transaction is value accretive, achieves a reduction in annual interest expense of approximately €21 million and will have no material impact on current leverage ratios, Ahold Delhaize’s ability to fund its growth opportunities or to further optimize its capital structure.