COMPLETION FOR ELISA?S EXCHANGE OFFER
ELISA CORPORATION STOCK EXCHANGE RELEASE 20 SEPTEMBER 2004 AT 2.00 a.m.
COMPLETION FOR ELISAS EXCHANGE OFFER Elisas Exchange Offer, announced 1 September 2004, to exchange the 2006 and 2007 maturing Notes to new 2011 maturing Notes has been priced and completed. According companys CFO Tuija Soanjärvi Elisa reached its goals, the average maturity of Elisas debt was lengthen from 3 years to 5,5 years and a new benchmark bond was created. The good demand made it possible to reach the Minimum Amount of 200 000 000 euros with the exchange so no additional Notes were issued, said Soanjärvi. For the 31 January 2006 maturing Notes 194 726 000 euros were exchanged to the New Notes, which represents 64.9 per cent of the outstanding Notes before the Exchange. For the 18 June 2007 maturing Notes 51 850 000 euros were exchanged to the New Notes, which represents 72.5 per cent of the outstanding Notes before the Exchange. The Exchange Offer was accepted by 66.4 per cent of the combined Amount of both Notes before the Exchange. New Notes (ISIN: XS0201780516) maturing in 22 September 2011 were issued totally of 260 010 000 euros according the Exchange Ratios of 1:1.0506 for the 2007 maturing Notes and 1:1.0556 for the 2006 maturing Notes. Pricing The 18 June 2007 maturing Notes. The 2007 Benchmark Rate (the mid- market yield of the BUND 6 per cent due 4 January 2007 - ISIN: DE0001135028) was 2.687 per cent at 16.00 hours Finnish time on 17 September 2004. Based on the Domestic Exchange Spread of 33 bps over the 2007 Benchmark Rate, the Domestic Exchange Price will be 104.474 per cent. The 31 January 2006 maturing Notes. The 2006 Benchmark Rate (the mid-market yield of the BUND 6 per cent due 5 January 2006 - ISIN: DE0001134997) was 2.388 per cent at 16.00 hours Finnish time on 17 September 2004. Based on the Euro Exchange Spread of 20 bps over the 2006 Benchmark Rate, the Euro Exchange Price will be 104.971 per cent. New Issue Price. The 7 Year Mid-Swap Rate (the mid-market arithmetic mean of the bid and offered swap rates for euro swap transactions with a maturity of 7 years) was 3.800 per cent at 16.00 hours Finnish time on 17 September 2004. Based on the New Issue Spread of 67 bps over the 7 Year Mid-Swap Rate, the yield of the New Notes will be 4.470 per cent. This equates to a New Issue Coupon of 4.375 per cent and a New Issue Price of 99.440 per cent. Exchange Ratios. By dividing the Domestic Exchange Price by the New Issue Price we derive a Domestic Exchange Ratio of 1:1.0506. By dividing the Euro Exchange Price by the New Issue Price we derive a Euro Exchange Ratio of 1:1.0556. Accordingly, for each Existing Note validly submitted into the Exchange Offer, New Notes will be issued at a ratio of 1:1.0506 (104.474/99.44) per Domestic Note and 1:1.0556 (104.971/99.44) per Euro Note. Settlement The Settlement Date is expected to be Wednesday 22 September 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. Outstanding 2006 and 2007 Notes The outstanding amount of the 31 January 2006 maturing 6,375 per cent Notes (ISIN XS50123501636) after the Exchange is 105 274 000 euros and the amount for the 18 June 2007 maturing 4,75 per cent Notes (ISIN FI0003008870) after the Exchange is 19 650 000 euros. The Dealer Manager was UBS Limited. The Co-Dealer Manager was OKO, Osuuspankkien Keskuspankki Oyj. ELISA CORPORATION VeliPekka Nummikoski Vice President, Corporate Communications Additional Information: Juha Kervinen, Group Treasurer, tel +358 10 262 3625 Dealer Manager UBS Limited Liability Management Group Tel. + 44 207 568 3118 Co-Dealer Manager OKO Osuuspankkien Keskuspankki Oyj Debt Capital and Treasury markets Tel. +358 9 404 797 Exchange Agents JPMorgan Chase Bank Rachel Owens / Karen Sheridan Tel. +44 20 7777 5410 OKO Osuuspankkien Keskuspankki Oyj Sinikka Laurila / Maija Hasanen Tel. +358 9 404 760 JPMorgan Bank Luxemburg S.A. ITS Operations Tel. +35 2 46268 5804 Listing Agent Dexia Banque Internationale à Luxembourg Transaction Execution Group Tel. +35 2 4590 1 Information Agent Bondholder Communications Group Tel. +44 207 236 0788 www.bondcom.com/elisa