Adecco begins tender offer for up to €200 million 1.5% notes due 2022

By Angela McDaniels

Tacoma, Wash., May 9 – Adecco Refinancing BV began a tender offer for the €500 million 1.5% notes due Nov. 22, 2022 issued by Adecco International Financial Services BV and guaranteed by Adecco Group AG (formerly known as Adecco SA), according to a company filing with the London Stock Exchange.

The company expects to accept up to €200 million of the notes for purchase. It reserves the right to accept more or less than this amount.

If the amount of notes tendered exceeds the cap, the company will accept tendered notes for purchase on a pro rata basis.

The purchase price will be determined by reference to a fixed purchase yield of negative 0.1%. It is intended to reflect a yield to the first optional par call date of the notes, Aug. 24, 2022, on the settlement date based on the purchase yield.

The settlement date is expected to be May 20. Using that settlement date, the purchase price would be 105.223% of par. If the settlement date is moved, the purchase price will be recalculated.

The company will also pay accrued interest.

The tender offer will end at 11 a.m. ET on May 16. The company expects to announce the purchase price and the tender offer results on May 17.

Holders must tender at least €100,000 principal amount of notes in order to participate in the tender offer.

The tender offer is subject to a financing condition.

Adecco International Financial Services plans to issue new euro-denominated fixed-rate notes. Adecco Refinancing plans to use the proceeds of the new issue to finance the tender offer.

The company said the offer is being made to optimize the Adecco group's debt maturity profile and cost of capital.

The dealer managers are BNP Paribas (+44 20 7595 8668 or liability.management@bnpparibas.com) and Credit Suisse Securities (Europe) Ltd. (+44 20 7883 8763 or liability.management@credit-suisse.com). The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or adecco@lucid-is.com).

Adecco is a staffing company based in Zurich.

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