ALSTOM Enters into Committed Bonding Guarantee

A syndicate of banks comprised of BNP Paribas, CCF, Crédit Agricole Indosuez, Crédit Lyonnais, Crédit Industriel et Commercial, Natexis Banques Populaires and Société Générale made a multi-currency, non-revolving, dual tranche bonding guarantee facility, in an initial maximum aggregate amount of euro 3.5 billion, available to ALSTOM Holdings, as well as to various members of the ALSTOM group of companies.

At ALSTOM’s request, the banks agreed, in accordance with the terms of the facility, to issue various financial instruments, including standby letters of credit, performance bonds and guarantees that will be used by ALSTOM in order to assist it in the backing and financing of its various commercial projects. The instruments that are issued under the terms of the facility will be 65 per cent guaranteed by the French state. The deal closed on August 29, 2003, and the Canadian subsidiaries acceded on September 11.

Certain Canadian subsidiaries of the ALSTOM group, including ALSTOM Canada Inc., have acceded to the facility. The Canadian subsidiaries were represented by in-house counsel Denise Devaul; and assisted by William Rosenberg, Peter Castiel, Howard Rosenoff, Donna Benedek and Jason Streicher of Stikeman Elliott LLP. In Europe, ALSTOM was represented by Sharon Lewis, Kevin Josel and Ashley Davies of Lovells.

The bank syndicate was represented by Michel Quéré, Tony Besse, Sarah Mook, Jane Kineke, Kristi Green, Gauthier de Barmon and François Potvin of Freshfields Bruckhaus Deringer, in charge of structuration, drafting and negotiation of the documentation. Clifford Chance, representing the French state, and Depardieu Brocase Maffei were co-advisors to the banking syndicate, in charge of bankruptcy law and bankers liability aspects.