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Ahold sets spreads in tender for up to €1 billion equivalent of bonds
New York, Oct. 17 - Ahold Finance U.S.A., LLC and Koninklijke Ahold NV announced the tender spreads in their offers to repurchase up to €1 billion equivalent of Ahold Finance's outstanding £500 million 6½% guaranteed notes due 2017 and €600 million 5 7/8% guaranteed notes due 2012 and Koninklijke Ahold's €1.5 billion 5 7/8% notes due 2008.
For the 6½% notes the spread is 196 basis points over the 4¾% U.K. Gilt due Sept. 7, 2015, the tight end of the previously tender spread range of 196 basis points to 201 bps; for the 5 7/8% notes due 2012 the spread is 108 basis points over the Bundesrepublik Deutschland 5% note due Jan. 4, 2012, towards the wide end of the range of 104 bps to 109 bps; and for the 5 7/8% notes due 2008 the spread is 52 basis points over the OBL series 142 3% notes due April 11, 2008, at the wide end of the range of 47 bps to 52 bps.
Ahold is soliciting for up to £250 million of 6½% notes, up to €330 million 5 7/8% notes due 2012 and up to €300 million notes due 2008, unless increased.
If Ahold Finance does not redeem its targeted amounts of 6½% notes and 5 7/8% notes due 2012, Koninklijke will increase its offer for €300 million of 5 7/8% notes due 2008. If the offers exceed the targeted amounts, the companies will repurchase the notes on a pro rata basis.
Pricing will be set at 6 a.m. ET on Oct. 20.
Tenders are being accepted up to 11 a.m. ET on Oct. 19.
Ahold NV is seeking to consolidate its outstanding debt and reduce both its and Ahold Finance's net interest expenses.
BNP Paribas and JP Morgan are lead dealer managers. JP Morgan Chase Bank is tender agent while Barclays Capital and Goldman Sachs are co-dealer managers.
Ahold is a Netherlands-based company in the retail trade and foodservice businesses.
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