Lafarge to Guarantee Lafarge North America's US$400 Million of Outstanding Debt Securities24 November 2006
Lafarge announces that it is providing an unconditional guarantee on all outstanding bonds issued by its subsidiary Lafarge North America Inc. under an Indenture for debt securities dated October 1, 1989 (as amended) with Citibank NA as Trustee. Following the acquisition in May 2006 of all the shares of Lafarge North America by Lafarge, the Board of Directors of Lafarge has decided to provide its unconditional guarantee on the outstanding debt securities of Lafarge North America. Lafarge North America's outstanding bonds currently stand for an amount of 400 million US dollars, half of it maturing on July 1, 2008 with the balance maturing on July 1, 2013. This guarantee will allow Lafarge to leverage Lafarge North America's balance sheet while providing Lafarge North America bondholders with Lafarge credit. Lafarge long term ratings, as publicly released by Standard and Poors and Moody's, are respectively BBB/ Baa2. The supplemental indenture embodying this guarantee is effective since November 15, 2006. Note to Editors: Lafarge is the world leader in building materials, with top-ranking positions in all four of its businesses: Cement, Aggregates & Concrete, Roofing and Gypsum. With 80,000 employees in 76 countries, Lafarge posted sales of Euros 16 billion in 2005. Lafarge has been committed to sustainable development for many years, pursuing a strategy that combines industrial know-how with performance, value creation, respect for employees and local cultures, environmental protection and the conservation of natural resources and energy. Lafarge is the only company in the construction materials sector to be listed in the 2006 '100 Global Most Sustainable Corporations in the World'. To make advances in building materials, Lafarge places the customer at the heart of its concerns. It offers the construction industry and the general public innovative solutions bringing greater safety, comfort and quality to their everyday surroundings. Additional information is available on the web site at www.lafarge.com. Statements made in this press release that are not historical facts, namely statements regarding our ability to leverage the balance sheet of Lafarge North America, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions ("Factors"), which are difficult to predict. Some of the Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the cyclical nature of the Company's business; national and regional economic conditions in the countries in which the Group does business; currency fluctuations; seasonal nature of the Company's operations; levels of construction spending in major markets; supply/demand structure of the industry; competition from new or existing competitors; unfavorable weather conditions during peak construction periods; changes in and implementation of environmental and other governmental regulations; our ability to successfully identify, complete and efficiently integrate acquisitions; our ability to successfully penetrate new markets; and other Factors disclosed in the Company's public filings with the French Autorite des Marches Financiers and the US Securities and Exchange Commission including its Reference Document and annual report on Form 20-F. In general, the Company is subject to the risks and uncertainties of the construction industry and of doing business throughout the world. The forward-looking statements are made as of this date and the Company undertakes no obligation to update them, whether as a result of new information, future events or otherwise. For further information: Communications Stephanie Tessier: 33-1 44-34-92-32 stephanie.tessier@lafarge.com Louisa Pearce-Smith: 33-1 44-34-18-18 louisa.pearce-smith@lafarge.com Lucy Wadge: 33-1 44-34-19-47 lucy.wadge@lafarge.com or Investor Relations Yvon Brind'Amour: 33-1 44-34-11-26 yvon.brindamour@lafarge.com Daniele Daouphars: 33-1 44-34-11-51 daniele.daouphars@lafarge.com Stephanie Billet: 33-1 44-34-94-59 stephanie.billet@lafarge.com
Source: newswire
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