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Instituto de Credito buys back 558.42 million notes via Dutch auction
By Susanna Moon
Chicago, Oct. 6 Instituto de Credito Oficial said it accepted for purchase tenders for 558,424,000 of several series of notes in the offer that ended at 10 a.m. ET on Oct. 5.
The company began a tender offer on Sept. 29 for up to 1 billion principal amount of the notes under an unmodified Dutch auction.
The group 1 series notes 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 for a reference benchmark yield of 0.08%, an average purchase spread of 9.58 bps and an average purchase price of 108.478%;
2.95 billion 4.125% notes due Sept. 28, 2017 using the Sept. 28, 2017 Benchmark rate plus 9 bps for a reference benchmark yield of 0.126%, an average purchase spread of 8.10 bps and an average purchase price of 107.705%; and
1,875,000,000 4.875% notes due Feb. 1, 2018 using the Feb. 1, 2018 Benchmark rate plus 10 bps for a reference benchmark yield of 0.244%, an average purchase spread of 8.77 bps and an average purchase price of 110.471%.
The company accepted tenders for 189,779,000 of the 4.875% notes due July 30, 2017, 74,036,000 of the 4.125% notes and 30,324,000 of the 4.875% notes due Feb. 1, 2018.
After settlement on Oct. 8, there will be left outstanding 2,185,221,000 of the 4.875% notes due July 30, 2017, 2,875,964,000 of the 4.125% notes and 1,844,676,000 of the 4.875% notes due Feb. 1, 2018.
As previously announced, the priority order was
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.
Group 2 notes
For group 2 series notes, pricing was 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 for a reference benchmark yield of negative 0.007%, an average purchase spread of 9.82 bps and an average purchase price of 103.631%;
3.29 billion of outstanding 3.35 billion 4.625% notes due Jan. 31, 2017 using Jan. 31, 2017 Benchmark rate plus 14 bps for a reference benchmark yield of 0.024%, an average purchase spread of 11.20 bps and an average purchase price of 105.893%;
1.35 billion 4% notes due April 30, 2018 using April 30, 2018 Benchmark rate plus 10 bps for a reference benchmark yield of 0.296%, an average purchase spread of 9.38 bps and an average purchase price of 109.177%; and
2.4 billion 4.375% notes due May 20, 2019 using May 20, 2019 Benchmark rate plus 12 bps for a reference benchmark yield of 0.511%, an average purchase spread of 10.55 bps and an average purchase price of 113.392%.
The company accepted tenders for 65,507,000 of the 5% notes, 96,204,000 of the 4.125% notes, 40,553,000 of the 4% notes and 62,021,000 of the 4.375% notes.
After settlement, there will be left outstanding 2,594,493,000 of the 5% notes, 3,193,796,000 of the 4.125% notes, 1,309,447,000 of the 4% notes and 2,337,979,000 of the 4.375% notes.
The company previously said it would 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 were made as part of the companys balance sheet management and were aimed at proactively managing its forthcoming debt maturities, the company previously said.
The offers also were meant to provide some liquidity to those holders whose notes are accepted in the offers.
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.
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