Michelin : Michelin announces the success of its

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News Desk 2018
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Michelin : Michelin announces the success of its three-tranche bond offering for a total amount of €2.5 billion

N OT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN

PRESS RELEASE Clermont-Ferrand, August 29, 2018

COMPAGNIE GENERALE DES ETABLISSEMENTS MICHELIN

Michelin announces the success of its three-tranche bond offering for a total amount of €2.5 billion

Michelin has successfully placed today a three-tranche bond offering for a total amount of €2.5 billion, with 7-year, 12-year and 20-year maturities respectively.

The 7-year tranche amounts to 750 million euros. It will bear a coupon of 0.875% per annum and will be issued at 99.099% of the nominal value.

The 12-year tranche amounts to 1 billion euros. It will bear a coupon of 1.75% per annum and will be issued at 99.262% of the nominal value.

The 20-year tranche amounts to 750 million euros. It will bear a coupon of 2.50% per annum and will be issued at 99.363% of the nominal value.

The net proceeds from the issue of the bonds will be used for general corporate purposes.

The issue was largely oversubscribed, reflecting institutional investors' confidence in Michelin's credit quality, rated A- by Standard & Poor's and A3 by Moody's. The issue has been rated A- by Standard & Poor's and A3 by Moody's.

The issue supports the Group's strategy of actively managing its debt and strengthening its liquidity. It helps to diversify Michelin's sources of financing and enhance its financial flexibility by lengthening the average maturity of its debt.

The settlement of the offering is expected to take place on September 3, 2018, once the listing prospectus has received the visa of the French Financial Market Authority ( Autorité des Marchés financiers ) (AMF). The bonds will then be admitted to trading on Euronext Paris.

Citigroup acted as Global Coordinator and active Joint Bookrunner for the 7-year tranche and the 12-year tranche and as Structuring Advisor and active Joint Bookrunner for the 20-year tranche.

Credit Agricole CIB acted as Global Coordinator and active Joint Bookrunner for the 20-year tranche and as Structuring Advisor and active Joint Bookrunner the 7-year tranche and for the 12-year tranche.

Banco Santander, S.A., Commerzbank Aktiengesellschaft, MUFG Securities EMEA plc, Natixis and Société Générale acted as active Joint Bookrunners for the three-tranche bond offering.

This press release does not constitute or form part of any offer or solicitation to purchase or subscribe for or to sell the bonds and the offering of the bonds is not an offer to the public in any jurisdiction, including France.

Investor Relations   Edouard de Peufeilhoux +33 (0) 4 73 32 74 47 +33 (0) 6 89 71 93 73 (cell) edouard.de-peufeilhoux@michelin.com   Matthieu Dewavrin +33 (0) 4 73 32 18 02 +33 (0) 6 71 14 17 05 (cell) matthieu.dewavrin@michelin.com   Humbert de Feydeau +33 (0) 4 73 32 68 39 +33 (0) 6 82 22 39 78 (cell) humbert.de-feydeau@fr.michelin.com   Media Relations   Corinne Meutey   +33 (0) 1 78 76 45 27   +33 (0) 6 08 00 13 85 (cell) corinne.meutey@michelin.com    

D I SC L A IM E R

I mportant information

This press release may not be published, distributed or released directly or indirectly in the United States of America, Australia, Canada or Japan. The distribution of this press release may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes, should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

No communication or information relating to the offering may be transmitted to the public in a country where there is a registration obligation or where an approval is required. No action has been or will be taken in any country in which such registration or approval would be required. The issuance or the subscription of the bonds may be subject to legal and regulatory restrictions in certain jurisdictions; Michelin assumes no liability in connection with the breach by any person of such restrictions.

This press release is an advertisement and not a prospectus within the meaning of Directive 2003/71/EC of the European Parliament and the Council of November 4, 2003 as amended (the " Prospectus Directive ").

The bonds have been offered only by way of a private placement in France to persons referred to in Article L.411-2-II of the French monetary and financial code ( Code monétaire et financier ) and outside France (excluding the United States of America, Australia, Canada and Japan), and there will be no public offering in any country (including France). This press release does not constitute a recommendation concerning the issue of the bonds. The value of the bonds can decrease as well as increase. Potential investors should consult a professional adviser as to the suitability of the bonds for the person concerned.

Prohibition of sales to E uropean Economic Area retail investors

No action has been undertaken or will be undertaken to make available any bonds to any retail investor in the European Economic Area. For the purposes of this provision:

  1. the expression "retail investor" means a person who is one (or more) of the following:  
  2. a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, " MiFID II "); or  
  3. a customer within the meaning of Directive 2002/92/EC (as amended, the " Insurance Mediation Directive "), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or  
  4. not a "qualified investor" as defined in the Prospectus Directive; and  
  5. the expression "offer" includes the communication in any form and by any means of sufficient information on the terms of the offer and the bonds to be offered so as to enable an investor to decide to purchase or subscribe the bonds.
  6. Consequently no key information document required by Regulation (EU) No 1286/2014 (as amended, the " PRIIPs Regulation ") for offering or selling the bonds or otherwise making them available to retail investors in the EEA has been prepared and therefore offering or selling the bonds or otherwise making them available to any retail investor in the EEA may be unlawful under the PRIIPS Regulation.

    France

    The bonds have not been and will not be offered or sold or cause to be offered or sold, directly or indirectly, to the public in France. Any offer or sale of the bonds and distribution of any offering material relating to the bonds have been and will be made in France only to (a) persons providing investment services relating to portfolio management for the account of third parties ( personnes fournissant le service d'investissement de gestion de portefeuille pour compte de tiers ), and/or (b) qualified investors ( investisseurs qualifiés ) acting for their own account, as defined in, and in accordance with, Articles L.411-1, L.411-2 and D. 411-1 of the French monetary and financial Code ( Code monétaire et financier ).

    U nited Kingdom

    This press release is addressed and directed only (i) to persons located outside the United Kingdom, (ii) to investment professionals as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the " O rder "), (iii) to people designated by Article 49(2) (a) to (d) of the Order or (iv) to any other person to whom this press release could be addressed pursuant to applicable law (the persons mentioned in paragraphs (i), (ii), (iii) and (iv) all deemed relevant persons (" Relevant Persons ")). The bonds are intended only for Relevant Persons and any invitation, offer of contract related to the subscription, tender, or acquisition of the bonds may be addressed and/or concluded only with Relevant Persons. All persons other than Relevant Persons must abstain from using or relying on this document and all information contained therein.

    This press release is not a prospectus which has been approved by the Financial Conduct Authority or any other United Kingdom regulatory authority for the purposes of Section 85 of the Financial Services and Markets Act 2000.

    U nited States of America

    This press release may not be published, distributed or transmitted in the United States of America (including its territories and dependencies, any State of the United States of America and the District of Columbia). This press release does not constitute or form a part of any offer or solicitation to purchase for securities in the United States of America. The securities mentioned herein have not been, and will not be, registered under the US Securities Act of 1933, as amended (the " Securities Act "), and may not be offered or sold in the United States of America except pursuant to an exemption from, or a transaction not subject to, the registration requirements of the Securities Act. Michelin does not intend to register any portion of the proposed offering in the United States of America and no public offering will be made in the United States of America.

    Australia, Canada and Japan

    The bonds may not and will not be offered, sold or purchased in Australia, Canada or Japan. The information contained in this press release does not constitute an offer of securities for sale in Australia, Canada or Japan.

    The distribution of this press release in certain countries may constitute a breach of applicable law.

    Attachment

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