Bertelsmann Successfully Places €650m Eurobond

Bertelsmann has successfully placed a 650-million Euro- bond in the market. The Eurobond, issued by Bertelsmann U.S. Finance, Inc., has a term of seven years and pays a coupon of 4.625 percent. The reoffer price is 99.663 percent. Bertelsmann had announced the Eurobond on Monday, and projected a volume of EURO 500 million. The issue was well oversubscribed, with bids from more than 130 investors. Bertelsmann took this strong investor interest as an opportunity to increase the bond to EURO 650 million. The bookbuilding was already closed on Tuesday.

The Eurobond is issued under Bertelsmann's existing Euro Medium Term Note (EMTN) program, which has a volume of EURO 3 billion and is rated BBB (Standard & Poor's) and Baa1 (Moody's). The bond will be traded on the Luxembourg stock exchange. Citigroup, Deutsche Bank, Dresdner Kleinwort Wasserstein and JP Morgan were the bookrunners for the transaction.

Bertelsmann CFO Siegfried Luther commented: "The successful placement of the Euro- bond gives our company's financing a solid grounding for the long term. It improves the maturity structure of our credit lines, and continues the transfer of our financing from bank loans to the capital market. The investor's attention has underscored the great interest that the market has in Bertelsmann. By placing the Eurobond, we sharpen our image among investors and strengthen our approach to the capital market."

Journalists please contact:
Bertelsmann AG
Markus Payer
Media Relations
Phone: 0 52 41 - 80-899 23
markus.payer@bertelsmann.de

Analysts and investors please contact:
Bertelsmann AG
Verena Volpert
Corporate Finance / Treasury
Phone: 0 52 41 - 80 23 42
verena.volpert@bertelsmann.de

Attachment

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PM_2_Eurobond_engl_2.pdf	66 kB