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Infogrames Entertainment Exchange Offer OCEANEs 2004 et 2005 October 28, 2003.

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Presentation on theme: "Infogrames Entertainment Exchange Offer OCEANEs 2004 et 2005 October 28, 2003."— Presentation transcript:

1 Infogrames Entertainment Exchange Offer OCEANEs 2004 et 2005 October 28, 2003

2 Disclaimer Ce document ne doit pas être publié, distribué ou diffusé aux Etats-Unis dAmérique. Ce document ne constitue pas une extension aux Etats-Unis de loffre publique déchange mentionnée dans le présent document et ne constitue pas une offre de vente de valeurs mobilières aux Etats-Unis ou une sollicitation dun ordre dachat de valeurs mobilières aux Etats-Unis. This document is for distribution in the United Kingdom only to persons who (i) have professional experience in matters relating to investments and/or (ii) are persons falling within Article 49(2)(a) to (d) of The Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (as amended). This document is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this document relates is available only to relevant persons and will be engaged in only with relevant persons. There will be no offer to the public in the United Kingdom within the meaning of the Public Offers of Securities Regulations 1995, as amended by The Financial Services and Markets Act 2000."

3 In September 2002, the Group set up 3 goals 1- operational restructuring 2- return to profitability 3- cash generation The achievement of these 3 objectives was a prerequisite to qddressing the debt issue in the most favourable conditions

4 3 major steps in refinancing the CB 2004 & CB 2005 Dec 2001 : buy back of CB 2005 for cash 101 M Dec 2002 to Jan 2003 : buy back of CB M Current transaction : –commitment to tender108 M –Exchange Offer ++ Not including the public offering of shares in the Atari Inc (Sept 2003) for $131 M

5 Evolution of CBs 2004 & M Buy Back 88 M Buy Back Commitment to Tender 108 M

6 Offer if 100% take-up rateCB 04CB 05Total In M124 M218 M342 M Exchanged for Cash39.7 M 33% M New shares (*)32.0 M 27% 22.8 M 12% 54.8 M CB 2009 (**)48.6 M 40% M 88% M Irrevocable commitment to tender from certain bondholders holding 108 M of convertible debt. (*) : share price : 4.60 per share (**) : with warrants attached (together qn OCABSA)

7 Commitment to tender Certain bondholders have already agreed to the proposed terms and conditions of the Offer and have irrevocably committed to tender their bonds to the Offer Commitments represent 108 M of convertible debt : –30.6% of CB 2004 or 38 M of convertible debt –and 32.1% of CB 2005 or 70 M of convertible debt Offer is not conditional upon any minimum acceptance rate

8 Offer Acceptance rate108M (*)66.7%100.00% Before CB CB Total342.4 Total tendered CB CB Total Package Cash Shares OCABSA Total After OCABSA CB CB Total (*) 108 M commitment to tender only

9 Necessary Approvals Offer subject to : –Stock Exchange Authorities approval (COB, CMF,…) –IESAs shareholders approval

10 Indicative timetable Filing with CMF and COB : October 28, 2003 CMF clearance on terms and conditions: November 5, 2003 –« Avis de recevabilité » published by the CMF –COB visa Offer period: from November 7 to 27, 2003 (15 trading days Offer results: December 8, 2003 IESAs EGM approval : December 17, 2003 (at the latest) Settlement : December 22, 2003

11 This offer will significantly improve IESAs balance sheet by (100% take-up rate) : -reducing the convertible debt by 128 M (*) - lengthening the debt maturity profile (from 1.5 to 4 years) -immediately increasing the shareholders equity by : 54.8 M (**) (11.9 million new shares) -further potential strengthening of shareholders equity through the potential conversion of the new CB 2009 (214.2 M) and the exercise of attached warrants (36.7 M) (*) excluding CB 2009 redemption premium (**) based on 4.60 price per share Impact for the Group

12 Acceptance rate (%)Increase in shareholders equity (1) Irrevocable commitment %37 100%55 Impact on shareholders equity (in M) (*) issue price of new shares 4.60, closing price on October 24, Acceptance rate (%)Net debt reduction Irrevocable commitment(28) 66.7%(59) 100%(88) Net debt reduction (in M)

13 Offer value for bondholders The Offer values : - Each CB 2004 at approximately (based on a 4.60 closing price per share as of October 24, 2003) - Each CB 2005 at approximately (based on a 4.60 closing price per share as of October 24, 2003) The table below indicates a summary of Offer premium for each CB Premium in % (1) CB 2004CB 2005 October 24, %7.2% 10-day average price4.3%8.0% 1-month average price5.0%8.4% 3-month average price12.0%22.4% 12-month average price51.4%81.3% (1)Average trading price as indicated by brokers disclosing daily prices over the respective periods shown (Crédit Lyonnais, Deutsche Bank, Citigroup)

14 Potential dilution Acceptance rate (%)New shares (M)Dilution (%) (*) Irrevocable commitment3.73.2% 66.7% % 100% % Immediate dilution (*) percentage of enlarged share capital post-issue (based on million shares outstanding as of September 30, 2003). Acceptance rate (%)New shares (M)Dilution (%) (**) Irrevocable commitment % 66.7% % 100% % Potential dilution through conversion (CB 2009 and warrants) (**) percentage of enlarged share capital post-issue (based on million shares outstanding as of September 30, 2003) and including immediate dilution effect of new shares issued.

15 Appendices

16 1. Detailed Offer terms Maximum number of bonds to be tendered – CB 2004 (excluding CB held by the Group) – CB 2005 (excluding CB held by the Group) For each CB 2004 : –30 in cash –5.25 IESA ordinary shares to be issued –5.25 CB 2009 to be issued –Each CB with a warrant attached For each CB 2005 –1.05 IESA ordinary shares to be issued –5 CB 2009 to be issued –Each CB with a warrant attached CB 2009 and the attached warrants are together defined as « OCABSA »

17 2.Terms and conditions of CB 2009 IssuerInfogrames Entertainment SA Maturity dateAvril 1, 2009 Coupon4% Par value100% (7.00) Issue Price for OCABSA100% of par value (including 1 warrant) Redemption Price107.7% of par value Yield to maturity5.31% Conversion Price7.00 Convertible into1 New or existing ordinary IESA share per 7.00 convertible bond Call featuresAfter 2 years / 130% ListingEuronext Paris

18 3. Terms and conditions of the warrants IssuerInfogrames Entertainment SA Issue1 warrant issued per new CB 2009 Maturity dateJune 30, 2005 Exercise price6.00 Exercisable into1 new ordinary IESA share per 5 warrants Exercise periodExercisable at any time from settlement to the maturity date ListingThe warrants will be listed on Euronext Paris and can be traded separately from the CB 2009


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