Stena International launches tender offer for 5¾% notes due 2024

By Marisa Wong

Los Angeles, Jan. 31 – Stena International SA announced it has begun a cash tender offer to purchase any and all of its $350 million outstanding 5¾% senior secured notes due 2024 (Cusip: 85858EAA1, L62788AA9) guaranteed by Stena AB and some of its subsidiaries and secured by some assets of the company’s subsidiaries.

Stena is offering to purchase the notes at $1,012.50 per $1,000 principal amount, plus accrued interest to but excluding the settlement date of the tender offer.

The tender offer is scheduled to expire at 5 p.m. ET on Feb. 6.

Settlement is slated for Feb. 9. This settlement date will also apply to any notes tendered under a notice of guaranteed delivery.

Tendered notes may be withdrawn at any time (i) at or prior to the earlier of the expiration time and, in the event the tender offer is extended, the 10th business day after the start of the offer and (ii) after the 60th business day after the start of the tender offer if for any reason the offer has not been completed within 60 business days.

The tender offer is conditioned on the issuer completing of an offering of senior secured notes for proceeds of at least $350 million. Proceeds from the new notes will be used to fund the tender offer. The tender offer is not conditioned on any minimum amount of notes being tendered, and the new notes offering is not conditioned on the completion of the tender offer.

The company said it intends to redeem any of the notes that remain outstanding after the expiration of the tender offer. The redemption may occur as early as March, and the redemption price is expected to be 101, which is less than the purchase price under the tender offer.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-3554) is dealer manager for the tender offer, and D.F. King & Co., Inc. (212 269-5550 for banks and brokers or 800 967-4617 for all others; stena@dfking.com; http://www.dfking.com/stena) is tender agent and information agent.

Stena International is a Luxembourg-based holding company and a direct subsidiary of Swedish conglomerate Stena AB, which has operations in shipping, ferry lines, offshore, real estate and finance.

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