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Lafarge accepts initial tenders for 2.25 billion of 11 note series
By Susanna Moon
Chicago, Sept. 16 Frances Lafarge SA said the indicative maximum acceptance amount was 2.25 billion principal amount in the tender offer for 11 series of its notes.
Holders needed to tender their notes by 11 a.m. ET on Sept. 15 in order to participate in the offer.
The company said on Sept. 5 that it was tendering for the euro equivalent of about 1.75 billion of notes but that the maximum acceptance amount could be significantly higher or lower than the indicative target amount.
The company accepted the following amount of notes using a proration factor for some of the note series, according to a company press release:
167,961,000, or 100%, of tendered 500 million 4Ό% notes due March 2016;
272,524,000, or 100%, of tendered 750 million 7 5/8% notes due November 2016 with coupon step of 125 basis points;
215,550,000, or 100%, of tendered 540 million 5 3/8% notes due June 2017 with pricing using June 2017 notes interpolated mid-swap rate plus 10 bps;
171,858,000, or 100%, of tendered 500 million 5% notes due April 2018 with coupon step of 125 bps and pricing using April 2018 notes interpolated mid-swap rate plus 35 bps;
467,743,000, or 100%, of tendered 1 billion 5 3/8% notes due November 2018 with coupon step of 125 bps and pricing using April 2018 notes interpolated mid-swap rate plus 35 bps;
244,057,000, or 100%, of tendered 500 million 5 7/8% notes due July 2019 with pricing using April 2018 notes interpolated mid-swap rate plus 35 bps;
190,475,000, or 59.384%, of tendered 750 million 5½% notes due December 2019 with coupon step of 125 bps and pricing using April 2018 notes interpolated mid-swap rate plus 35 bps;
None of the 500 million 4Ύ% notes due March 2020 with pricing using April 2018 notes interpolated mid-swap rate plus 35 bps;
None of the 750 million 4Ύ% notes due September 2020 with pricing using April 2018 notes interpolated mid-swap rate plus 35 bps;
£254,275,000, or 100%, of tendered £350 million 8Ύ% notes due May 2017 with coupon step of 125 bps and pricing using April 2018 notes interpolated mid-swap rate plus 35 bps; and
£127,254,000, or 100%, of tendered £200 million 6 5/8% notes due November 2017 with pricing using April 2018 notes interpolated mid-swap rate plus 35 bps.
Pricing details
The tender offer was set to price at 6 a.m. ET on Sept. 16 using the following reference rates and fixed spreads:
500 million 4Ό% notes due March 2016;
750 million 7 5/8% notes due November 2016 with coupon step of 125 basis points;
540 million 5 3/8% notes due June 2017 with pricing using June 2017 notes interpolated mid-swap rate plus 10 bps;
500 million 5% notes due April 2018 with coupon step of 125 bps and pricing using April 2018 notes interpolated mid-swap rate plus 35 bps;
1 billion 5 3/8% notes due November 2018 with coupon step of 125 bps and pricing using April 2018 notes interpolated mid-swap rate plus 35 bps;
500 million 5 7/8% notes due July 2019 with pricing using April 2018 notes interpolated mid-swap rate plus 35 bps;
750 million 5½% notes due December 2019 with coupon step of 125 bps and pricing using April 2018 notes interpolated mid-swap rate plus 35 bps;
500 million 4Ύ% notes due March 2020 with pricing using April 2018 notes interpolated mid-swap rate plus 35 bps;
750 million 4Ύ% notes due September 2020 with pricing using April 2018 notes interpolated mid-swap rate plus 35 bps;
£350 million 8Ύ% notes due May 2017 with coupon step of 125 bps and pricing using April 2018 notes interpolated mid-swap rate plus 35 bps; and
£200 million 6 5/8% notes due November 2017 with pricing using April 2018 notes interpolated mid-swap rate plus 35 bps.
More information
The tender offer is intended to reduce the debt of the LafargeHolcim Group after the merger between Holcim Ltd. and Lafarge SA using proceeds from related divestments, according to the company press release.
The company also will pay accrued interest to the settlement date of Sept. 21.
Interest is expected to step down by 125 bps to the original coupons for the November 2016 notes, the April 2018 notes, the November 2018 notes, the December 2019 notes and the May 2017 sterling notes, after the credit ratings of the company were restored to investment grade in August. Interest was stepped up by 125 bps after the ratings were dropped to junk status in 2011, the release noted.
The minimum denominations will be 1,000 for the March 2020 notes, £1,000 for the November 2017 sterling notes, 50,000 for the March 2016 notes, the November 2016 notes, the June 2017 notes, the April 2018 notes, the November 2018 notes and the December 2019 notes, £50,000 for the May 2017 sterling notes and 100,000 for the July 2019 notes and the September 2020 notes.
After that, notes may be tendered in integral multiples of 1,000 for the November 2016 notes, the April 2018 notes, the November 2018 notes, the July 2019 notes, the December 2019 notes, the March 2020 notes and the September 2020 notes, integral multiples of 50,000 for the March 2016 notes and June 2017 notes integral multiples and in integral multiples of £1,000 for the May 2017 sterling notes and November 2017 sterling notes.
Societe Generale (+33 1 42 13 40 66 or liability.management@sgcib.com) and Royal Bank of Scotland plc (+44 20 7085 3781 or liabilitymanagement@rbs.com) are the structuring advisers. Banco Santander, SA (+44 20 7756 6909 or tommaso.grospietro@santandergbm.com), Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com), ING Bank NV (+31 20 563 2132 or liabilitymanagement@ing.be) and UniCredit Bank AG (+49 89 378 13722 or corporate.lm@unicredit.de) are the joint dealer managers. Citibank NA, London Branch (+44 20 7508 3867 or exchange.gats@citi.com) is the tender agent.
Lafarge is a Paris-based building materials company.
© 2015 Prospect News.
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