Wine Industry Report

Pernod Ricard launched on 23 November 2006 their inaugural dual tranche EUR 850 million bond transaction. Key highlights of the deal are as follows :

Tranche 1 : EUR 300m FRN due June 2011
Amount : EUR 300 million
Maturity : 4 years and a half
Final maturity : 6 June 2011
Settlement : 6 December 2006
Format : Floating Rate Notes
Coupon : Euribor 3 months + 50 bp
Reoffer price : 99.876
Reoffer spread : 53 bp over 3month-Euribor

Tranche 2 : EUR 550m 4.625% due December 2013
Amount : EUR 550 million
Maturity : 7 years
Final maturity : 6 December 2013
Settlement : 6 December 2006
Format : Fixed Rate Notes
Coupon : 4.625 %
Reoffer price : 99.526
Reoffer spread : 80bp over the 7 year fixed swap rate

Pernod Ricard’s senior long term debt is rated BB+ by Standard & Poor’s and Baa3 by Moody’s.

The transaction has been very well received by the market with nearly a 4 time global oversubscription within the morning. The initial price guidance on both tranches have been revised during the process and the final spread on each tranche has been finally set on the tight end of the revised spread talk.

This transaction was envisaged at the time of the Allied Domecq acquisition financing and is aimed at refinancing part of the credit facility put in place in August 2005. It allows the Group to diversify its financing sources.

PERNOD RICARD has appointed HSBC, IXIS-CIB, Natixis, Royal Bank of Scotland and Société Générale CIB as Joint Bookrunners to lead manage and place this inaugural issue.