STORA ENSO OYJ Stock Exhange Release 18 June 2004 at 17.20
Stora Enso announces the successful completion of its Exchange
Offer for its 6.375% Notes due June 2007
This Announcement is made as a matter of record only and should
be read in conjunction with the Exchange Offer Memorandum dated
4 June 2004 (the "Exchange Offer Memorandum") which has been
prepared by Stora Enso Oyj ("Stora Enso" or the "Company") in
relation to the Exchange Offer.
On 4 June 2004, Stora Enso announced the launch of an Exchange
Offer for its 6.375% Euro Medium Term Notes maturing 29 June
2007 (the "Existing Notes"). The Exchange Offer closed on 17
June 2004. Under the terms of the Exchange Offer, all holders
(subject to offer restrictions as set out in the Exchange Offer
Memorandum) of the Existing Notes were invited to offer to
exchange any or all of their holdings into new euro denominated
Fixed Rate Notes maturing June 2014 (the "New Notes").
Minimum Exchange Condition
Following receipt by the Exchange Agent of valid Electronic
Acceptance Notices totalling EUR 475 375 000 in aggregate
principal amount of Existing Notes, Stora Enso is pleased to
announce that the Minimum Exchange Condition has been met. All
Electronic Acceptance Notices validly submitted before 15.00
hours CET on the Expiration Date (i.e. 17 June 2004) will be
accepted in full. Due to the targeted new issue size of EUR
500 000 000 having been met, no additional notes will be issued.
A full press release from the Company will follow.
Exchange Price. The 2007 Benchmark Rate (the mid-market yield
of the BUND 6% due 4 July 2007 - ISIN: DE0001135036) was 3.154%
at 15.00 hours CET on Friday 18 June 2004. Based on the
Exchange Spread of 26 bps over the 2007 Benchmark Rate, the
Exchange Price will be 108.351% of EUR 1 000 principal amount of
New Issue Price. The 10 Year Mid-Swap Rate (the mid-market
arithmetic mean of the bid and offered swap rates for euro swap
transactions with a maturity of 10 years) was 4.448% at 15.00
hours CET on Friday 18 June 2004. Based on the New Issue Spread
of 74 bps over the 10 Year Mid-Swap Rate, the yield of the New
Notes will be 5.188%. This equates to a New Issue Coupon of
5.125% and a New Issue Price of 99.518% of EUR 1 000 principal
amount of New Notes.
Exchange Ratio. By dividing the Exchange Price by the New Issue
Price we derive an Exchange Ratio of 1:1.0888. Accordingly, New
Notes will be issued at a ratio of 1.0888 per Existing Note
validly submitted into the Exchange Offer. This generates an
aggregate principal amount of New Notes of EUR 517 555 000.
The Settlement Date is expected to be Wednesday 23 June 2004, on
which date the New Notes will be delivered to the holders of
Existing Notes who have validly accepted the Exchange Offer, in
accordance with the terms and conditions of the Exchange Offer.
For more information about the Stora Enso Exchange Offer, please
J.P. Morgan Securities Ltd.
Paul Hawker, Liability Management, tel. +4420 7777 4185
Robin Stoole, Syndicate Desk, tel. +4420 7779 2468
Merrill Lynch International
Asar Mashkoor, Liability Management, tel. +4420 7995 3715
Jeff Tannenbaum, Syndicate Desk, tel. +4420 7995 3966
JPMorgan Chase Bank
Karen Sheridan, tel. +4420 7777 5908
Ed Leedham, tel. +4420 7777 9458
Contact persons at Stora Enso:
Peter Nordquist, Vice President, Funding, tel. +4420 7016 3266
Hannu Kasurinen, Senior Vice President, Group Treasurer, tel.
+4420 7016 3250
STORA ENSO OYJ
Jyrki Kurkinen Ulla Paajanen-Sainio