Veolia Environnement tenders for up to $100 million of 6.75% notes

By Sarah Lizee

Olympia, Wash., Nov. 26 – Veolia Environnement SA launched an offer to purchase for cash up to $100 million of its $400 million of 6.75% notes due 2038, according to a press release.

The tender offer is being made concurrently with the closing of the previously announced sale of the company's district energy assets in the United States through its subsidiary, Veolia Energy North America Holdings, Inc.

The price paid in the tender offer will be determined based on the yield to maturity, corresponding to the bid-side price of the 2.25% Treasury due Aug. 15, 2049 plus a fixed spread of 130 basis points, resulting in a hypothetical total consideration of $1,438.13 per $1,000 principal amount of notes.

Holders who tender their notes by 5 p.m. ET on Dec. 10, the early participation date, will be eligible to receive the total consideration, which will include an early tender premium equal to $50 per $1,000 principal amount of notes. Holders who tender their notes after the early participation date will receive the tender consideration minus the early tender premium.

Holders will also receive accrued interest.

The offer will expire at 5 p.m. ET on Jan. 3.

Tenders may be withdrawn by the early participation date, but not after.

Notes tendered before the early participation date will have priority in acceptance over notes tendered after the early participation date.

The tender offer is not contingent on the tender of any minimum principal amount of notes.

Final settlement is scheduled for Jan. 7.

The dealer managers are Citigroup Global Markets Ltd. (+1 800 558-3745 toll free or +44 20 7986 8969) and MUFG Securities Americas Inc. (+1 877 744-4532 toll free or +44 20 7577 4048/4218).

Global Bondholder Services Corp. (+1 866 470-4200) is the information agent.

The company said the purpose of the offer is to reduce its outstanding debt and interest expense.

Veolia is an environmental services provider based in Paris.

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