Deutsche Telekom launches capped tender offer for 2027, 2028 notes

By Marisa Wong

Los Angeles, Feb. 24 – Deutsche Telekom International Finance BV is inviting holders of two series of notes guaranteed by parent company Deutsche Telekom AG to tender their notes for purchase for cash, up to an aggregate principal amount of $500 million.

The issuer is offering to purchase notes from the following series, listed in order of acceptance priority level:

• $1.25 billion 3.6% notes due January 2027 (ISIN: US25156PBA03, USN27915AS11), with pricing to be based on the 4% U.S. Treasury due Feb. 15, 2026 and a fixed spread of 50 basis points; and

• $1.2 billion 4.375% notes due June 2028 (ISIN: US25156PBB85, USN2557FFL33), with pricing to be based on the 4% U.S. Treasury due Feb. 29, 2028 and a fixed spread of 85 bps.

The issuer is offering an early tender payment of $30 per $1,000 principal amount of notes tendered by the early tender deadline.

Holders will also receive accrued interest on notes accepted for purchase.

The offer cap may be increased or decreased.

Tenders may be subject to proration.

The early tender deadline is 5 p.m. ET on March 9, which is also the withdrawal deadline.

Pricing will be set at or around 10 a.m. ET on March 10. Early participation results will be announced prior to the pricing time but on the same day. The company will make an announcement on pricing and early acceptance soon after the pricing time.

Early settlement is expected to be March 13.

The offer expires at 5 p.m. ET on March 24.

Final results are expected to be announced on March 27.

Final settlement is slated for March 28.

Notes purchased under the offers will be canceled.

The company said the purpose of the offers is, amongst other things, to proactively manage its cost of carry. The company said it also believes the offers give holders the opportunity to sell their current holdings in the notes ahead of their respective maturity dates.

The dealer managers for the offer are Citigroup Global Markets Ltd. (liabilitymanagement.europe@citi.com; +44 20 7986 8969, 800 558-3745 or 212 723-6106) and RBC Capital Markets, LLC (liability.management@rbccm.com; +44 20 7029 0107, 877 381-2099 or 212 618-7843).

The tender and information agent is D.F. King (https://sites.dfkingltd.com/DeutscheTelekom; DTel@dfkingltd.com; 866 828-6934, 212 269-5550, +44 20 7920 9700).

The telecommunications company is based in Bonn, Germany.

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