Artemis issues €400m bond tied to Kering share performance

Artemis, the Pinault family’s holding company and majority investor in Kering, announced Tuesday the launch of a 400 million euro ($464 million) bond tied to the performance of the French luxury group’s shares.

The company said in a statement that investors will have the option to exchange the securities for a cash amount determined by the performance of Kering’s ordinary shares.

The statement added that Artemis will calculate the cash amount based on the average price of Kering stock over a set period following the exchange, without delivering any shares.

Bookrunners said earlier on Tuesday that the offering has already been fully subscribed, with demand exceeding the deal size.

The bond, maturing on December 1, 2030, will be issued at par and will carry an annual interest rate between 1% and 1.5%.

J.P. Morgan, Crédit Agricole CIB, Natixis, and BNP Paribas are the global coordinators of the bond issue.

Artemis, which also has a stake in sports brand Puma, will likely have to pay back 500 million euros in cash to investors for a convertible bond due this week, after Puma shares underperformed.

Artemis said its net financial debt, which includes its direct non-operational subsidiaries, amounted to 7.1 billion euros as of May 31.

According to the statement, the net proceeds of the bond issue will be used for general corporate purposes.