Ahold Calls Convertible Notes Early
THE HAGUE, Netherlands - Dutch retailer Ahold will call 920 million euros (U.S.$1.13 billion) in convertible notes early in order to cut debt, Reuters reports.
The retailer, which needed rescue financing and an equity boost to emerge from a 1 billion-euro (U.S. $1.22 billion) profit overstatement scandal in early 2003, said it had no current plans for takeovers and that bids for its Spanish assets were coming in.
Ahold c.f.o. Hannu Ryopponen said in a shareholders meeting that the 4.0 percent convertible subordinated notes due in 2005 would be paid at par, together with accrued interest and unpaid interest in line with a plan revealed in April.
The company's new management is working to improve operating margins and cut debt -- which stood at 7.5 billion euros (U.S. $9.17 billion) at the end of 2003 -- in order to return Ahold's junk-rated bonds to "investment grade" by the end of 2005.
Ahold, which owns Stop & Shop and Giant-Carlisle in the United States, aims to raise 2.5 billion euros (U.S. $3.06 billion) through disposals of units. So far it has withdrawn from Latin America and Asia, and has received several bids for its Spanish assets.
The retailer, which needed rescue financing and an equity boost to emerge from a 1 billion-euro (U.S. $1.22 billion) profit overstatement scandal in early 2003, said it had no current plans for takeovers and that bids for its Spanish assets were coming in.
Ahold c.f.o. Hannu Ryopponen said in a shareholders meeting that the 4.0 percent convertible subordinated notes due in 2005 would be paid at par, together with accrued interest and unpaid interest in line with a plan revealed in April.
The company's new management is working to improve operating margins and cut debt -- which stood at 7.5 billion euros (U.S. $9.17 billion) at the end of 2003 -- in order to return Ahold's junk-rated bonds to "investment grade" by the end of 2005.
Ahold, which owns Stop & Shop and Giant-Carlisle in the United States, aims to raise 2.5 billion euros (U.S. $3.06 billion) through disposals of units. So far it has withdrawn from Latin America and Asia, and has received several bids for its Spanish assets.