Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers I > Headlines for Instituto de Credito Oficial > News item |
Instituto de Credito begins Dutch auction tender for 1 billion notes
By Susanna Moon
Chicago, Sept. 29 Instituto de Credito Oficial said it began a tender offer for up to 1 billion principal amount of several series of notes under an unmodified Dutch auction.
The group 1 series notes will be priced at 4 a.m. ET on Oct. 6 using a benchmark rate plus a maximum spread as follows:
2,375,000,000 of outstanding 2,475,000,000 4.875% notes due July 30, 2017 using the July 30, 2017 Benchmark rate plus 12 basis points;
2.95 billion 4.125% notes due Sept. 28, 2017 using the Sept. 28, 2017 Benchmark rate plus 9 bps; and
1,875,000,000 4.875% notes due Feb. 1, 2018 using the Feb. 1, 2018 Benchmark rate plus 10 bps.
The priority order will be
First, non-competitive tender instructions up to the maximum amount; and
Second, competitive tender instructions up to the maximum amount less the aggregate principal amount of non-competitive tender instructions for the group 1 series notes accepted for purchase.
The Madrid-based company reserves the right to change the maximum amount or to accept significantly less than or more than that amount, according to a company press release.
For group 2 series notes, pricing will be set using a benchmark rate plus a maximum purchase spread as follows:
2.66 billion of outstanding 2.75 billion 5% notes due July 5, 2016 using July 5, 2016 Benchmark rate plus 12 bps;
3.29 billion of outstanding 3.35 billion 4.625% notes due Jan. 31, 2017 using Jan. 31, 2017 Benchmark rate plus 14 bps;
1.35 billion 4% notes due April 30, 2018 using April 30, 2018 Benchmark rate plus 10 bps; and
2.4 billion 4.375% notes due May 20, 2019 using May 20, 2019 Benchmark rate plus 12 bps.
The company said it will accept for purchase non-competitive tender instructions for group 1 series notes ahead of non-competitive tender instructions of the group 2 series and of any other competitive tender instructions.
The offers are being made as part of the companys balance sheet management and are aimed at proactively managing its forthcoming debt maturities, the press release noted.
The offers also are aimed at providing a degree of liquidity to those holders whose notes are accepted in the offers.
The tender offers will end at 10 a.m. ET on Oct. 5, with settlement on Oct. 8.
The dealer managers are Banco Bilbao Vizcaya Argentaria SA (+44 207 648 7516, fax +44 207 397 6094 or liabilitymanagement@bbva.com), BNP Paribas (+44 20 7595 8668 or liability.management@bnpparibas.com), HSBC Bank plc (+44 20 7992 6237 or liability.management@hsbcib.com).
The tender agent is Lucid Issuer Services Ltd. (+44 0 20 7704 0880, David Shilson, or ico@lucid-is.com).
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.