Fortis to Raise $4.4 Billion for ABN Deal

Dutch-Belgian financial services group Fortis said on Friday it plans to issue a maximum of 3 billion euros ($4.4 billion) in convertible debt as part of financing for the purchase of some
ABN Amro operations.

Fortis said in a statement it plans to offer "convertible and subordinated hybrid equity-linked securities" of up to 2.5 billion euros, with the option to increase the offering with a maximum of 500 million euros.

The holders of the convertibles will have the right to exchange the paper into ordinary Fortis shares at any time 40 days after the issue date at the "exchange price", Fortis said.

The exchange price will be set at 30 to 35 percent above the result of the weighted average of the Volume-Weighted Average Price of the Fortis shares from launch to close of trading on Euronext Amsterdam and Euronext Brussels on the pricing date, Fortis said.

The convertibles will automatically be exchanged for Fortis shares at any time after seven years after the issue date if certain conditions are met, Fortis said.

The convertibles are undated and are expected to carry a cash coupon of 3-month EURIBOR plus 1.75 to 2.5 percent, Fortis said.