Deutsche Telekom raises offer cap for 2027, 2028 notes, sets pricing

By Marisa Wong

Los Angeles, March 10 – Deutsche Telekom International Finance BV announced the early participation results and pricing of its Feb. 24 invitation to holders of two series of notes guaranteed by parent company Deutsche Telekom AG to tender their notes for purchase for cash, up to a maximum aggregate principal amount.

The company decided to increase the offer cap to $631,813,000 from the original $500 million, according to a Friday morning press release.

The company confirmed in a press release later in the day that it will accept for purchase all of the notes tendered by the early tender deadline at 5 p.m. ET on March 9. The final acceptance amount is equal to the revised offer cap.

As of the early tender deadline, holders had tendered the following notes, with the series listed in order of acceptance priority level:

• $389,877,000 of the $1.25 billion outstanding 3.6% notes due January 2027 (ISIN: US25156PBA03, USN27915AS11) at $956.06 per $1,000 principal amount, with pricing calculated based on the 4% U.S. Treasury due Feb. 15, 2026 and a fixed spread of 50 basis points; and

• $241,936,000 of the $1.2 billion outstanding 4.375% notes due June 2028 (ISIN: US25156PBB85, USN2557FFL33) at $979.02 per $1,000 principal amount, with pricing based on the 4% U.S. Treasury due Feb. 29, 2028 and a fixed spread of 85 bps.

The consideration includes 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.

Early settlement is expected to be March 13. Notes purchased will be canceled.

Although the offer expires at 5 p.m. ET on March 24, the offer cap has already been reached, and no notes tendered after the early deadline will be purchased regardless of the acceptance priority level of those tendered notes.

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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