NOT FOR DISTRIBUTION TO ANY U.S.PERSON OR ITALIAN PERSON OR TO ANY PERSON OR ADDRESS IN THE UNITED STATES OR ITALY (SEE FULL OFFER RESTRICTIONS BELOW)
Amsterdam, The Netherlands, October 11, 2005 - Ahold Finance U.S.A., LLC ("Ahold Finance") and Koninklijke Ahold N.V. ("Koninklijke Ahold" and together with Ahold Finance, the "Companies") today announced Solicitations of offers to sell up to EUR 1,000,000,000 equivalent aggregate principal amount (subject to change by the Companies at any time) of Ahold Finance's outstanding GBP 500 million 6.50% Guaranteed Notes due 2017 and its outstanding EUR 600 million 5.875% Guaranteed Notes due 2012 and Koninklijke Ahold's outstanding EUR 1.5 billion 5.875% Notes due 2008 (together the "Notes").
The Solicitations are being made to decrease Koninklijke Ahold's outstanding consolidated indebtedness and to reduce the Companies' respective annual net interest expense. The Companies will use available cash to provide the total amount of funds required to purchase the Notes sought pursuant to the Solicitations and to pay all accrued and unpaid interest on such Notes. Koninklijke Ahold expects to incur a one time book loss under IFRS. The size of this loss is dependent on market conditions and will be charged as a financial expense in the fourth quarter accounts.
Solicitation Details
The Companies have invited all eligible holders of the Notes to offer to sell such Notes to Ahold Finance and Koninklijke Ahold, respectively, upon the terms and conditions contained in the Solicitation Memorandum dated October 11, 2005. The Companies will accept for purchase maximum amounts of the Notes at purchase prices based on tender spreads to the reference bonds, all as detailed below.
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