The New Bonds are to be issued on the same terms (save for the date of issue, the interest commencement date and the issue price) as the $600 million bonds with non-dilutive (cash-settled) warrants due 2023 issued by BASF on March 9, 2017, and shall be fully fungible, and form a single series with these bonds.
BASF will purchase cash-settled call options to hedge its economic exposure in case of exercise of the warrants attached to the New Bonds. These warrants will be cash settled only and will thus not result in the creation of new shares or the delivery of existing shares of BASF upon exercise. Settlement of the New Bonds is expected to occur on or about Nov. 2, 2017.
It is anticipated that the hedge counterparties to the call options will enter into transactions to hedge their respective positions under the call options through the purchase or sale of BASF shares or any other transactions, in the market and off-market, at any time, and in particular during the period of three trading days from Oct. 25, 2017 to Oct. 27, 2017 and at or around the exercise or redemption of the warrants.