BBVA accepts all €527.65 million of tendered notes issued by Iberdrola

By Toni Weeks

San Luis Obispo, Calif., Jan. 22 – Banco Bilbao Vizcaya Argentaria, SA announced the results of its tender offer for three series of notes and also increased the overall amount it would accept to €527.65 million from the €500 million previously announced. The offer began on Jan. 14.

The notes are guaranteed by Iberdrola SA.

The company said following the 11 a.m. ET on Jan. 21 expiration time that it accepted for purchase €527.65 million in aggregate principal amount of notes, which includes all notes tendered from the three series as follows:

• €91.45 million of the €500 million of outstanding 3.5% series 92 guaranteed notes due Oct. 13, 2016 issued by Iberdrola Finanzas, SAU;

• €378.7 million of the €750 million of outstanding 4.5% series 101 guaranteed notes due Sept. 21, 2017 issued by Iberdrola International BV; and

• €57.5 million of the €750 million of outstanding 5.625% series 77 guaranteed notes due May 9, 2018 issued by Iberdrola Finanzas.

The purchase price was calculated at 8 a.m. ET on Jan. 22 using the October 2016 interpolated mid-swap rate minus a spread of 10 basis points for a purchase yield of 0.032% for the 3.5% notes, the September 2017 interpolated mid-swap rate plus a spread of zero bps for a purchase yield of 0.169% for the 4.5% notes and the May 2018 interpolated mid-swap rate plus a spread of 7 bps for a purchase yield of 0.277% for the 5.625% notes. The purchase price per €1,000 principal amount of notes was €1,059.36 for the 3.5% notes, €1,114.50 for the 4.5% notes and €1,174.48 for the 5.625% notes.

BBVA will also pay accrued interest to the Jan. 26 settlement date of €10.07 for the 3.5% notes, €15.66 for the 4.5% notes and €40.38 for the 5.625% notes.

Following the transactions, the amount of each series remaining is €408.55 million of the 3.5% notes, €371.3 million of the 4.5% notes and €692.5 million of the 5.625% notes.

Settlement is expected Jan. 26.

BBVA (44 20 7648 7516 or 44 20 7397 6125; liabilitymanagement@bbva.com), Banca IMI SPA (39 02 7261 4782; Liability.Management@bancaimi.com) and Citigroup Global Markets Ltd. (40 20 7986 8969; liabilitymanagement.europe@citi.com) were the dealer managers.

The tender agent was Lucid Issuer Services Ltd. (attn: Victor Parzyjagla / David Shilson at 44 20 7704 0880; iberdrola@lucid-is.com).

The bank and finance company is based in Bilbao, Spain.

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