DP World posts final results of tender offer for 1.75% convertibles

By Sarah Lizee

Olympia, Wash., Sept. 24 – DP World Ltd. announced the final results of its tender offer for any and all of its $847.2 million of outstanding 1.75% convertible bonds due 2024 for cash through a reverse bookbuilding process.

As of the deadline, which was extended to noon ET on Sept. 23 from noon ET on Sept. 20 originally, the company received tenders for $589.8 million of the convertibles. The company said it will accept for purchase all convertibles tendered in the offer.

As previously reported, the company is offering $199,750 per $200,000 principal amount.

The issuer will pay interest to but excluding the settlement date.

Notes that are not tendered were subject to a cleanup call if the offer resulted in less than 15% of the bonds remaining outstanding, the company said. However, it is expected that $257.4 million, or 25.74%, of the convertibles will remain outstanding following the settlement date.

Settlement is expected on Oct. 1.

Notes must be tendered in multiples of $200,000.

DP World said it is making the offer, along with a tender offer for its $500 million of 3¼% notes due 2020 that was also announced Thursday, in order to manage upcoming debt maturities and will use drawdowns under its existing credit facilities, existing cash resources and/or the proceeds of any new securities issuance to fund the purchase of any notes accepted for purchase in the offer.

The company said it is considering its options regarding a potential new securities issuance, subject to market conditions, under its $10 billion global medium-term note program or its $5 billion trust certificate issuance program with DP World Crescent Ltd.

If such a new issuance occurs, holders who tender existing notes under the offer may be given allocation preference for the new securities.

Citigroup Global Markets Ltd. (+44 20 7986 8969) and Deutsche Bank AG, London Branch (+44 20 7545 8011) are the dealer managers.

DP World is a Dubai-based operator and developer of marine terminals and provider of related services.

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