Glencore gives early results of one-month tender; offer cap upsized

By Susanna Moon

Chicago, Dec. 15 – Glencore Funding LLC accepted early tenders for $1,136,960,000 of four series of notes.

The company began tendering for up to $1 billion of notes on Dec. 1 and then raised the maximum tender amount to $1,136,960,000 on Dec. 15.

The breakdown for the early tenders is as follows, with the notes listed in order of priority acceptance levels and pricing for each $1,000 principal amount:

• $189,712,000 of the $878,188,000 2.5% notes due 2019 with pricing to be set using the 1% U.S. Treasury note due Nov. 15, 2019 plus 90 basis points;

• $146,542,000 of the $593.1 million 3.125% notes due 2019 with pricing based on the 1% U.S. Treasury note due Nov. 15, 2019 plus 95 bps;

• $220,567,000 of the $500 million floating-rate notes due 2019 with pricing at $1,010; and

• $580,139,000 of the $1 billion 2.875% notes due 2020 with pricing based on the 1.75% U.S. Treasury note due Nov. 30, 2021 plus 75 bps.

The total purchase price includes an early tender premium of $30.00 for each $1,000 principal amount of notes tendered by the early tender deadline of 5 p.m. ET on Dec. 4.

Holders who tender their notes after the early deadline will receive the base purchase price, which is the total amount less the early premium.

Pricing was scheduled for 11 a.m. ET on Dec. 15 using the bid-side prices of the reference U.S. Treasury security.

The tender offer will end at 11:59 p.m. ET on Dec. 29.

The company also will pay accrued interest.

Notes that are tendered before the early deadline will have priority over notes tendered afterward, regardless of priority level, according to an announcement by Glencore plc.

D.F. King & Co., Inc. (212 269-5550, 866 342-4884, +44 20 7920 9700, glen@dfking.com or dfking.com/glencore) is the information and tender agent. Morgan Stanley & Co. LLC (800 624-1808, 212 761-1057, +44 20 7677 5040, liabilitymanagementeurope@morganstanley.com) and UBS Securities LLC are the lead dealer managers. BBVA Securities Inc. and HSBC Securities (USA) Inc. are the co-dealer managers.

Contact UBS Investment Bank (203 719-4210, 888 719-4210, +44 20 7568 2133 or ol-liabilitymanagement-eu@ubs.com).

Glencore is a supplier of commodities and raw materials to industrial consumers. It is based in Baar, Switzerland.

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