Lafarge to guarantee Lafarge North America’s US$400m of outstanding debt securities

Lafarge to guarantee Lafarge North America’s US$400m of outstanding debt securities
Published: 23 November 2006

Lafarge announces that it is providing an unconditional guarantee on all outstanding bonds issued by its subsidiary Lafarge North America Inc. under an Indenture for debt securities dated October 1, 1989 (as amended) with Citibank NA as Trustee.

Following the acquisition in May 2006 of all the shares of Lafarge North America by Lafarge, the Board of Directors of Lafarge has decided to provide its unconditional guarantee on the outstanding debt securities of Lafarge North America.

Lafarge North America’s outstanding bonds currently stand for an amount of US$400m, half of it maturing on July 1, 2008 with the balance maturing on July 1, 2013.

This guarantee will allow Lafarge to leverage Lafarge North America’s balance sheet while providing Lafarge North America bondholders with Lafarge credit.