ENN Energy offers to buy up to $150 million 2 5/8% notes due 2030

Chicago, Nov. 8 – China’s ENN Energy Holdings Ltd. is offering to buy up to $150 million principal amount of the $750 million outstanding 2 5/8% senior notes due Sept. 17, 2030 (Cusips: 26876FAC6, G3066LAF8), according to an announcement.

The tender offer will be conducted as a modified Dutch auction procedure.

The acceptable bid spread range has been set between 115 basis points and 135 bps using the 3 7/8% U.S. Treasury due Aug. 15, 2033. The measurement date for the reference yield will be at 8 a.m. ET on the first business day before the early participation deadline.

The bid premium is determined by subtracting the bid spread from the 145 bps base spread.

The tender offer consideration will include a $30 early tender premium only paid to noteholders who tender before the deadline.

The early deadline and withdrawal date is 5 p.m. ET on Nov. 22.

The offer starts on Nov. 8 and expires at 5 p.m. ET on Dec. 8.

Early payment is expected to be made on Nov. 28 and the final payment date is expected to be Dec. 13.

Tenders may be subject to proration.

HSBC is the dealer manager (+852 3941 0223, +44 207 992 6237, 212 525-5552, liability.management@hsbcib.com).

Kroll Issuer Services Ltd. is the information and tender agent (+852 2281 0114, ennenergy@is.kroll.com).

The purpose of the tender offer is to reduce the group’s outstanding non-functional currency-denominated debt, to reduce foreign exchange risk.

The company will use cash on hand to finance the offer.

ENN Energy is a Lanfang, China-based investment holding company that invests in, operates and manages gas pipeline infrastructure and sells and distributes gas.

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