Portugal’s EDP gives update in oversubscribed tender for two issues

By Susanna Moon

Chicago, Dec. 13 – EDP - Energias de Portugal, SA said holders had tendered $332,924,000 of its 4.9% notes due Oct. 1, 2019 and $368,474,000 of the 4 1/8% notes due Jan. 15, 2020 issued by EDP Finance BV as of the early deadline at 5 p.m. ET on Dec. 12.

EDP accepted for purchase all of the tendered 4.9% notes and $167,076,000 of the 4 1/8% notes using a proration factor of 43.7074%, according to a company announcement.

Settlement is expected to occur on Dec. 15.

The tender offer was set to remain open until 11:59 p.m. ET on Dec. 27.

Because the offer has been oversubscribed as of the early date, however, the company said it will not accept any notes tendered after the early deadline.

Tenders may no longer be withdrawn as of the early deadline.

Pricing was scheduled for 10 a.m. ET on Dec. 13 using the reference security plus a fixed spread for a hypothetical purchase price for each $1,000 principal amount as follows, with the notes listed in order of priority acceptance levels:

• $969,462,000 4.9% notes due Oct. 1, 2019 based on the 1.75% Treasury note due Nov. 30, 2019 plus 40 basis points for a total hypothetical purchase price of $1,048.19; and

• $750 million 4.125% notes due Jan. 15, 2020 based on the 1.75% Treasury note due Nov. 15, 2020 plus 50 bps for a total hypothetical purchase price of $1,036.36.

The total purchase price will include an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early deadline of 5 p.m. ET on Dec. 12.

The hypothetical purchase price was set at 10 a.m. ET on Nov. 28.

Holders also will receive accrued interest up to but excluding the settlement date.

The offer began Nov. 29.

EDP is aiming “to optimize its liability portfolio and increase the average life of its debt” by using cash on hand to cut debt as part of its liability management strategy, according to a previous company announcement.

Morgan Stanley & Co. LLC (800 624-1808, 212 761-1057, +44 20 7677 5040 or liabilitymanagementeurope@morganstanley.com) and Deutsche Bank Securities Inc. (866 627-0391, 212 250-2955, +44 20 7545 8011 or liability.management@db.com) are the dealer managers.

D.F. King Ltd. (212 709-3328, 212 269-5552, +44 20 7920 9700, edp@dfkingltd.com or https://sites.dfkingltd.com/edp) is the information and tender agent.

EDP is an electricity operator based in Lisbon, Portugal.

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