Hungary lifts cap for 2023, 2024 notes as tender offer wraps

Chicago, Jan. 11 – Hungary announced the final results of its capped tender offer relating to its $2 billion 5¾% notes due 2023 (ISIN: US445545AJ57), of which $1,151,760,000 was outstanding, and $2 billion 5 3/8% notes due 2024 (ISIN: US445545AL04), of which $1,642,972,000 was outstanding.

Hungary was initially offering to buy up to $750 million of the notes but has decided to accept $1 billion principal amount instead.

The purchase prices were to be determined through a modified Dutch auction procedure.

The maximum purchase spread for each series was 20 basis points over the relevant benchmark security. Hungary is applying the maximum spreads for both notes. The benchmark security for the 2023 notes is the ¼% U.S. Treasury due November 2023, and the benchmark security for the 2024 notes is the 2¼% U.S. Treasury due March 2024. This results in a purchase price of $1,006.47 per $1,000 note for the 2023 notes and $1,005.75 per $1,000 note for the 2024 notes. Interest will also be paid: $8.15 per note for the 2023 notes and $16.13 per note for the 2024 notes.

Noteholders were invited to either tender their notes with non-competitive instructions or competitive tender instructions.

The issuer will be accepting only tenders with non-competitive tender instructions, and applying a proration scaling factor to those tenders.

Accordingly, the series acceptance amount for the November 2023 notes is $380.3 million, with a scaling factor of 83.3627% applied.

For the 2024 notes, Hungary is accepting $619.7 million as a series acceptance amount and applying a scaling factor of 83.3637%.

Settlement is planned for Jan. 13.

Settlement is still subject to a financing condition.

BNP Paribas (+33 1 55 77 78 94; liability.management@bnpparibas.com), Citigroup Global Markets Europe AG (+44 20 7986 8969; liabilitymanagement.europe@citi.com), Deutsche Bank AG (+44 20 7545 8011), Goldman Sachs Bank Europe SE (+44 20 7774 4836; liabilitymanagement.eu@gs.com) and J.P. Morgan SE (+44 20 7134 2468; em_europe_lm@jpmorgan.com) are the dealer managers.

Kroll Issuer Services Ltd. (+44 20 7704 0880; attn.: Illia Vyshenskyi; hungary@is.kroll.com; https://deals.is.kroll.com/hungary) is information and tender agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.