Apr 26, 2007. /Lesprom Network/. Pfleiderer AG successfully launched and priced Euro 275 million of Perpetual (non call 7 years) subordinated hybrid bonds, achieving a highly attractive coupon of 7.125%. Following a successful 4-day pan-European Roadshow to market its debut international capital market transaction for hybrid capital with institutional investors, the orderbook was ten-fold oversubscribed before being closed on April 19, 2007. The hybrid bonds were placed with quality institutional investors across Europe. Settlement of the hybrid bond transaction is scheduled for April 27, 2007. The proceeds of the issue together with other financial sources will be used to finance Pfleiderer’s recent strategic acquisition of Swedish Pergo AB. Furthermore, the hybrid bonds underpin Pfleiderer’s commitment to maintain a conservative financial profile and strong balance sheet as it strives to achieve its targeted investment grade rating in the near future. The subordinated bonds of Pfleiderer AG are rated B1/BB- (both with stable outlook) by Moody's and Fitch and have been assigned 50 % and 75 % “equity credit” by Moody’s and Fitch respectively. The hybrid bonds will be accounted for as equity in accordance with IFRS. As a result of this hybrid bond transaction, Fitch will upgrade Pfleiderer’s senior rating by one notch from BB (positive outlook) to BB+ (stable outlook). ABN AMRO Bank N.V. and Barclays Bank PLC acted as joint bookrunners and joint structuring advisors on this transaction. “Our pan-European Roadshow has underlined the great support of the financial community for Pfleiderer Group’s strategy of earnings’ led growth”, says Derrick Noe, chief financial officer of Pfleiderer AG. “We were strongly impressed by a ten-fold oversubscription of the orderbook showing a demand of well over Euro 2.5 billion for hybrid capital of Pfleiderer AG during our inaugural capital market transaction for hybrid capital”, Mr. Noe comments further on. MDAX-listed Pfleiderer AG is a leading supplier of engineered wood, surface finished products and laminate flooring. With around 5 200 employees and production sites in Western Europe, Eastern Europe and North America, the Pfleiderer Group posted revenues exceeding Euro 1.4 billion in fiscal 2006.