Launch of the process for transferring nuclear fuel cycle activities to NewCo
August 30, 2016
AREVA formally initiates the process for transferring nuclear fuel cycle activities to NewCo.
- Adoption of the draft partial transfer agreement providing for a remuneration of the contribution calculated on the basis of an actual value of transferred assets and liabilities in the order of 1.4 billion euros;
- Convening of the Extraordinary General Meeting of AREVA SA on November 3, 2016, to approve the draft partial transfer agreement;
- Convening of Meetings of Bondholders on September 19, 2016, to approve the proposed partial transfer of assets from AREVA SA to NewCo and the simultaneous transfer of the bond debt1 to NewCo:
- Granting by AREVA SA of a temporary guarantee until completion of the NewCo capital increase, in the form of an irrevocable joint and several guarantee for the bondholder debt to be transferred to NewCo
- Preliminary B+ credit rating attributed to NewCo by S&P with possible raise by several notches on completion of the capital increase
- Confirmation of the projected capital increase for an overall amount of 5 billion euros2 divided into 2 billion euros in AREVA SA and 3 billion euros in NewCo, in line with the financing requirements of the two companies;
- Update of Newco's mid-term financial outlook to take account of Front End market conditions.
____________________________1 With the exception of the 2016 bond issue which will be repaid by AREVA SA at maturity
2 Subject to approval by the European Commission under the rules on state aid