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BorgWarner offers to buy notes from two series for up to $500 million
By Marisa Wong
Los Angeles, Aug. 28 – BorgWarner Inc. has begun tender offers to purchase for cash debt securities from two series for an aggregate total consideration of up to $500 million (excluding interest), according to a press release.
The company is offering to purchase securities from the following series, listed in order of acceptance priority level:
• $500 million outstanding 3.375% senior notes due 2025 (Cusip: 099724AJ5), with pricing to be based on the 4.75% U.S. Treasury due July 31, 2025 and a fixed spread of 60 basis points; and
• $775,896,000 outstanding 5% senior notes due 2025 (Cusip: 099724AM8, U0560UAA0), with pricing to be based on the 4.75% U.S. Treasury due July 31, 2025 and a fixed spread of 70 bps.
For each series, the total consideration includes an early tender payment of $50 per $1,000 principal amount of notes tendered by the early tender date.
The company will also pay accrued interest.
The company said it may increase, decrease or eliminate the aggregate tender cap at any time without extending the withdrawal deadline. As a result, the company advised that holders not tender any securities that they do not wish to be accepted in a tender offer.
Tenders may be subject to proration.
The early tender date and withdrawal deadline is 5 p.m. ET on Sept. 11.
Pricing will be determined at 9 a.m. ET on Sept. 12.
If the company elects to have an early settlement date, it would be on Sept. 14.
The tender offers will expire at 5 p.m. ET on Sept. 26.
Final settlement is slated for Sept. 28.
Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955) is the dealer manager for the tender offers. Global Bondholder Services Corp. (212 430-3774 or 855 654-2015) is the tender and information agent.
BorgWarner is an automotive supplier based in Auburn Hills, Mich.
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