Total Raises $1.2 Bln In New Debt Financing

(RTTNews) - French oil giant Total SA (TOT, TTA.L) Wednesday said it is raising around $1.2 billion of new debt financing through a structure combining the issue of non-dilutive cash-settled convertible bonds with the purchase of cash-settled call options to hedge the company's exposure to the exercise of the conversion rights under the bonds.

The combination of these two products will create a synthetic bond financing equal to a standard debt instrument with no dilution for shareholders. The bonds will have a seven year maturity.

It is expected that one or more of the joint book-runners will enter into transactions to hedge their respective positions in respect of the call options.

Total intends to use the net proceeds of the issuance of the bonds for general corporate purposes. The final terms of the bonds are expected to be announced later today.

The bonds will be offered via an accelerated book building process through a private placement to institutional investors outside the U.S., Australia, Canada and Japan.