French drinks combine, Pernod Ricard, has announced the launch of a EUR425 million convertible bond offering with the aim of refinancing some of the debt incurred in the acquisition of the Seagram spirits brands in late-2001.

The move will allow the group to reduce its interest charges.

The bond's value is expected to be set at a 25% to 30% premium over the Pernod Ricard share price. The bonds will be listed on Euronext Paris and are being placed by a group of banks led by JP Morgan Securities.