French energy giant Total is raising approximately $1.2 billion of new debt financing.
The new debt financing will be raised through a “ structure combining the issue of non-dilutive cash-settled convertible bonds with the purchase of cash-settled call options to hedge Total’s exposure to the exercise of the conversion rights under the bonds ,” Total said on Wednesday.
The combination of these two products will create a synthetic bond financing equivalent to a standard debt instrument with no dilution for shareholders. The bonds will have a seven-year maturity, the company added.
Paris-based Total intends to use the net proceeds of the issuance of the bonds for general corporate purposes.