Hydro-Quebec gives results for series GL note tender, exchange offers

By William Gullotti

Buffalo, N.Y., Aug. 1 – Hydro-Quebec gave the results for its tender and exchange offers for its series GL floaters, according to a notice.

Both the tender offer and exchange offer expired at 11 a.m. ET on July 28.

As previously reported, two separate invitations were sent to holders of its $400 million undated floating-rate notes, series GL (ISIN: GB0044519493) guaranteed by Quebec, with $200.81 million outstanding, inviting them to either

• Tender any or all of their existing notes for purchase for cash at a price of 70, plus accrued interest; or

• Offer any or all of their existing notes for exchange on a par-for-par basis for new U.S. dollar-denominated undated floating-rate notes, series JT, to be issued by Hydro-Quebec and guaranteed by Quebec.

As of the final expiration for both offers, $739,997 of the existing notes were tendered for purchase and $128.44 million were tendered in the exchange offer.

All of the notes tendered were accepted for purchase or exchange without proration.

The final results reflect an additional $9,997 of notes tendered for purchase and an additional $50,000 of notes tendered for exchange since the offer was extended on July 26.

As previously reported, the new notes (ISIN: XS2645732467) bear interest at 5.3125% for the period from March 31 to but excluding the last business day falling in September. After that, the coupon will be compounded SOFR plus the original margin of 6.25 basis points plus a credit spread adjustment of 42.826 bps.

The offers were launched on July 17 in connection with the replacement of Libor with SOFR. The offers had an original deadline of 11 a.m. ET on July 25.

Settlement has been extended to Aug. 14 from Aug. 3. Originally, settlement was slated for July 31.

Merrill Lynch International (+44 20 7996 5420; DG.LM-EMEA@bofa.com) is acting as dealer manager for the offers, and Kroll Issuer Services Ltd. (+44 20 7704 0880; attn.: David Shilson; hydroquebec@is.kroll.com; https://deals.is.kroll.com/hydroquebec) is acting as tender and exchange agent.

Hydro-Quebec is a Montreal-based electric utility.

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