23.6.2004: Meldung: Stora Enso Oyj: 2007 Eurobond Exchange Offer completed

Stora Enso successfully completes 2007 Eurobond Exchange Offer

Stora Enso Oyj Stock Exchange Release 22 June 2004 at 11:00 GMT

The offer to exchange Stora Enso EUR 850m 2007 bonds for a new benchmark bond with a 10-year maturity that was launched on 4 June 2004 has been successfully priced and completed. The transaction was well received by the market and investors; the aim of creating a new benchmark 10-year bond by exchanging existing bonds and minimising the amount of additional bonds issued was achieved. The transaction also extends the average maturity of the Company"s debt portfolio by one year, which was an important motive for the transaction.

Creating the new benchmark bond alongside the existing ones is in line with Stora Enso"s funding strategy and will ensure that the Company"s access to liquidity at competitive pricing remains strong. The participation in the transaction and the pricing achieved reflect the status of Stora Enso as a premium borrower in the bond market.

EUR 475 375 000 of Existing Notes have been exchanged, corresponding to 55.9 per cent of the total outstanding amount of Existing Notes. By application of the Exchange Ratio of 1:1.0888, EUR 517 555 000 of New Notes will be issued on 23 June 2004. The high level of interest in the transaction meant that no new issuance was needed to achieve the benchmark size of the new Bond

The Dealer Managers for this transaction were J.P. Morgan Securities Ltd. and Merrill Lynch International. Co-Dealer Managers were Barclays Capital, BNP Paribas, ING Financial Markets and SEB Merchant Banking. The Exchange Agent was JPMorgan Chase Bank.


Exchange Price. The 2007 Benchmark Rate (the mid-market yield of the BUND 6% due 4 July 2007 - ISIN: DE0001135036) was 3.154% at 15.00 hours CET on Friday 18 June 2004. Based on the Exchange Spread of 26 bps over the 2007 Benchmark Rate, the Exchange Price will be 108.351% of EUR 1 000 principal amount of Existing Notes.

New Issue Price. The 10-Year Mid-Swap Rate (the mid-market arithmetic mean of the bid and offered swap rates for euro swap transactions with a maturity of 10 years) was 4.448% at 15.00 hours CET on Friday 18 June 2004. Based on the New Issue Spread of 74 bps over the 10-Year Mid-Swap Rate, the yield of the New Notes will be 5.188%. This equates to a New Issue Coupon of 5.125% and a New Issue Price of 99.518% of EUR 1 000 principal amount of New Notes.

Exchange Ratio. By dividing the Exchange Price by the New Issue Price we derive an Exchange Ratio of 1:1.0888. Accordingly, New Notes will be issued at a ratio of 1.0888 per Existing Note validly submitted into the Exchange Offer. This generates an aggregate principal amount of New Notes of EUR 517 555 000.

For further information, please contact:
Hannu Kasurinen, Senior Vice President, Group Treasurer, tel. +44 7789 940 976
Peter Nordquist, Vice President Head of Funding, tel. +44 20 7016 3266


Stora Enso is an integrated paper, packaging and forest products company producing publication and fine papers, packaging boards and wood products, areas in which the Group is a global market leader. Stora Enso sales totalled EUR 12.2 billion in 2003. The Group has some 44 000 employees in more than 40 countries in five continents and about 15.7 million tonnes of paper and board annual production capacity and 7.4 million m3 of sawn wood products, including 2.8 million m3 of value-added products. Stora Enso"s shares are listed in Helsinki, Stockholm and New York.
Stora Enso Oyj
Business ID 1039050-8

Kanavaranta 1 00160 Helsinki, Finland P.O. Box 309 FIN-00101 Helsinki, Finland Tel.: +358 2046 131 Fax: +358 2046 21471


Stora Enso Oyj Business ID 1039050-8
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