Roche extends early payment to all after tender offer sees low turnout

By Angela McDaniels

Tacoma, Wash., Dec. 6 – Roche Holding Ltd. subsidiary Roche Holdings, Inc. had received tenders for $79,059,000 principal amount, or 6.23%, of its $1,268,987,000 of outstanding 7% notes due 2039 as of 5 p.m. ET on Dec. 5, according to a company news release.

As previously reported, a tender offer for the notes began Nov. 21 and will end at 11:59 p.m. ET on Dec. 19.

The maximum aggregate purchase price, exclusive of accrued interest, for the offer is $250 million.

The total consideration is $1,458.04 per $1,000 principal amount of notes. This includes an early tender premium of $50.00 per $1,000 principal amount of notes.

The company has decided to pay the early tender premium to all holders whose notes are accepted for purchase. Prior to the change, only holders who tendered by 5 p.m. ET on Dec. 5, the early tender date, were eligible to receive the early tender premium.

The company will pay accrued interest up to but excluding the applicable settlement date, which is expected to be Dec. 6 for notes tendered by the early tender date and Dec. 20 for notes tendered after that time but prior to the offer expiration.

The total consideration was determined at 2 p.m. ET on Dec. 5 by reference to a fixed spread of 83 basis points over the yield to maturity of the 2.25% U.S. Treasury due Aug. 15, 2046.

The dealer manager is J.P. Morgan Securities LLC (866 834-4666, 212 834-3424 or +44 207 779 2468). The information agent and tender agent is D.F. King & Co., Inc. (866 356-7814, 212 269-5550 or roche@dfking.com).

Roche is a Basel, Switzerland-based drug maker.

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