Ceská zbrojovka issuing bonds worth Kc4bn

Uhersky Brod, South Moravia, Feb 24 (CTK) - Czech arms group CZG - Ceska zbrojovka Group SE (CZG) is issuing bonds worth up to Kc4bn in total, planning to use the proceeds from their sale for the announced acquisition of US arms manufacturer Colt Holding Company LLC, server Seznam Zpravy has said.

The total value of the bonds issued by CZG can be raised up to Kc5bn. The bonds will have a six-year maturity and will bear floating interest of 1.93-2.23 percent annually. They will be offered to both institutional and retail clients.

The bond issue will be prepared by Ceska sporitelna and Komercni banka.

According to information released earlier, CZG is to acquire a 100-percent stake in Colt for USD220m (Kc4.7bn) in cash and for 1,098,620 shares of newly issued CZG common stock.

CZG said earlier it would gain significant production capacity in the USA and Canada and expand its global customer base thanks to the acquisition.

The transaction is subject to regulatory approvals, and it is expected to be concluded in the first half of this year.

According to the server, the acquisition will give rise to a group with a turnover of more than USD500m (Kc11bn) and with more than 2,000 employees.

CZG is a leading European firearms producer for military and law enforcement, personal defense, hunting and other civilian use. It employs roughly 1,650 people in Czechia, the USA and Germany.

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