Kering announced the launch of an offering of bonds exchangeable into existing ordinary shares of Puma for an amount of 500 million euros by way of a placement to qualified investors (only in accordance with Article L. 411-2 II of the Code monétaire et financier). The net proceeds of the issuance of the Bonds will be used for general corporate purposes of Kering.

The bonds will be issued at a principal amount of 100 000 euros per bond and will bear no interest (zero coupon). The bonds will be redeemed at their principal amount (100 000 euros per bond) at maturity, i.e., on the 30^th September 2022 (absent the occurrence of an early redemption), subject to the issuer’s (Kering) option to deliver existing ordinary shares in Puma and an additional amount in cash.

The bonds may be redeemed prior to maturity at the option of the issuer under certain conditions. In particular, the bonds may be redeemed, in whole but not in part, at the principal amount at the issuer’s option starting on 30^th September 2021, subject to a prior notice of at least 40 calendar days (without exceeding 60 calendar days) if the arithmetic average, calculated in respect of 20 consecutive trading days chosen by the issuer from among the 40 consecutive trading days preceding the publication of the early redemption notice, of the products of the Volume Weighted Average Price of Puma’s shares on each trading day within the relevant observation period and the exchange ratio (as defined in the Terms and Conditions) on that day, exceeds 125% of the principal amount.

The bonds may be redeemed at the option of the bondholders in case of change of control or a delisting. In certain cases of early redemption of the bonds, the issuer will have the option to deliver existing ordinary shares in Puma and an additional amount in cash. The initial exchange price will represent an exchange premium of between 30% and 35% over the reference share price of Puma.

The offering is aimed at specific investors and markets, and excludes the US, Japan and Australia, where such kind of operation is not approved.