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Air Liquide Launches the Last Step of Airgas Acquisition Refinancing

September 23, 2016

Air Liquide Launches the Last Step of Airgas Acquisition Refinancing

Regulatory News:

Air Liquide (Paris:AI) announces the successful placement of five USD-denominated senior bonds for an aggregate amount of 4.5 billion U.S. dollars, that constitute the third and last step in refinancing its acquisition of Airgas. These bond issuances have maturities ranging from 3 to 30 years, for an average weighted maturity of 10.6 years.

Following the Euro bonds issued in June and together with the rights issue in progress, the 4.5 billion dollars raised enable the Group to refinance the remainder of the bridge loan facility of 12 billion dollars that was contracted in December 2015 from its main banks in connection with the acquisition of Airgas, and to continue to sustainably finance the Group’s long-term growth.

The main characteristics of the bonds, which are expected to be settled on September 27th, 2016 are the following:

Amount: 4.5 billion U.S. dollars, in 5 series
Issuer: Air Liquide Finance
Guarantor: L’Air Liquide S.A.
Maturities: 3, 5, 7, 10 and 30 years
Format: fixed rate
Coupons (payable semi-annually) :
- 1.375% on the 3-year series (750 million U.S. dollars),
- 1.75% on the 5-year series (1 billion U.S. dollars),
- 2.25% on the 7-year series (750 million U.S. dollars),
- 2.50% on the 10-year series (1.25 billion U.S. dollars), and
- 3.50% on the 30-year series (750 million U.S. dollars), for a weighted average rate of 2.3 %.

Each issue will be rated «A-» by Standard & Poor’s and « A3 » by Moody’s.

With the completion of this transaction, the total amount of bond issues outstanding to date is approximately 14.3 billion euros for the Group, with an average maturity of 7 years.

Fabienne Lecorvaisier, Group Chief Financial Officer, said: “This inaugural U.S. dollar issue, a first for Air Liquide, is the last step of the Airgas acquisition refinancing, and should enable us to repay our acquisition bridge loan less than 5 months after drawdown.”

UPCOMING DATES
Third quarter 2016 revenue:
October 25, 2016

The world leader in gases, technologies and services for Industry and Health, Air Liquide is present in 80 countries with approximately 68,000 employees and serves more than 3 million customers and patients.* Oxygen, nitrogen and hydrogen have been at the core of the company’s activities since its creation in 1902. Air Liquide’s ambition is to be the leader in its industry, delivering long-term performance and acting responsibly.

Air Liquide ideas create value over the long term. At the core of the company’s development are the commitment and constant inventiveness of its people.

Air Liquide anticipates the challenges of its markets, invests locally and globally, and delivers high-quality solutions to its customers and patients, and the scientific community.

The company relies on competitiveness in its operations, targeted investments in growing markets and innovation to deliver profitable growth over the long-term.

Air Liquide’s revenues amounted to €16.4 billion in 2015, and its solutions that protect life and the environment represented more than 40% of sales. On 23 May 2016, Air Liquide completed its acquisition of Airgas, which had revenues amounting to $5.3 billion (around €4.8 billion) for the fiscal year ending 31 March 2016.

Air Liquide is listed on the Paris Euronext stock exchange (compartment A) and is a member of the CAC 40 and Dow Jones Euro Stoxx 50 indexes.

*Following the acquisition of Airgas on 23 May 2016

Disclaimer

This document does not contain or constitute an invitation, inducement or solicitation to invest.

These materials are not an offer of securities for sale nor the solicitation of an offer to purchase securities in the United States of America or any other jurisdiction. The securities referred to herein may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Air Liquide does not intend to register any portion of the offer in the United States of America or to conduct a public offering of securities in the United States of America.

This document does not constitute a prospectus within the meaning of Directive 2003/71/EC of the European Parliament and the Council of 4 November 2003, as amended (the “Prospectus Directive”).

With respect to the Member States of the European Economic Area (each a “Relevant Member State”), no action has been undertaken or will be undertaken to make an offer to the public of securities requiring a publication of a prospectus in any Relevant Member State. As a result, securities of Air Liquide may not be offered and will not be offered in any Relevant Member State except (i) to any legal entity which is a qualified investor as defined under the Prospectus Directive, (ii) to fewer than 150, natural or legal persons (other than qualified investors as defined in the Prospectus Directive) as permitted under the Prospectus Directive; or (iii) in any other circumstances not requiring Air Liquide to publish a prospectus as provided under Article 3(2) of the Prospectus Directive and/or regulations applicable in the Relevant Member State.

For the purposes of this provision, an “offer to the public” in relation to securities of Air Liquide in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and of securities of Air Liquide to be offered so as to enable an investor to decide to purchase securities of Air Liquide, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member State.

This press release is directed only at and is for distribution only to persons who (i) are outside the United Kingdom, (ii) are “investment professionals” falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Order”), (iii) are persons falling within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc.”) of the Order or (iv) are other persons to whom an invitation or inducement to engage in investment activity (within the meaning of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons in (i), (ii), (iii) and (iv) together being referred to as “Relevant Persons”). This press release 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 press release relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

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