Oman offers to buy notes from eight series for up to $1.75 billion

By Marisa Wong

Los Angeles, June 22 – The Government of the Sultanate of Oman, represented by the Ministry of Finance, is inviting holders of eight series of outstanding notes to tender their notes for purchase for cash, up to a maximum purchase price of $1.75 billion.

The offers cover the following notes:

• $1.25 billion outstanding 4 7/8% notes due 2025 (ISIN: XS1944412664, US68205LAA17), with pricing to be based on the 2 7/8% U.S. Treasury due June 15, 2025 and a maximum purchase spread of 230 basis points;

• $2.5 billion outstanding 4¾% notes due 2026 (ISIN: XS1405777589, US682051AC17), with pricing to be based on the 2 5/8% U.S. Treasury due May 31, 2027 and a maximum purchase spread of 265 bps;

• $2 billion outstanding 5 3/8% notes due March 2027 (ISIN: XS1575967218, US682051AE72), with pricing to be based on the 2 5/8% U.S. Treasury due May 31, 2027 and a maximum purchase spread of 270 bps;

• $1.45 billion outstanding 6¾% notes due October 2027 (ISIN: XS2234859101, US68205LAD55), with pricing to be based on the 2 5/8% U.S. Treasury due May 31, 2027 and a maximum purchase spread of 295 bps;

• $2.5 billion outstanding 5 5/8% notes due 2028 (ISIN: XS1750113661, US682051AH04), with pricing to be based on the 2 5/8% U.S. Treasury due May 31, 2027 and a maximum purchase spread of 295 bps;

• $2.25 billion outstanding 6% notes due 2029 (ISIN: XS1944412748, US68205LAB99), with pricing to be based on the 2 7/8% U.S. Treasury due May 15, 2032 and a maximum purchase spread of 315 bps;

• $1.75 billion outstanding 6¼% notes due 2031 (ISIN: XS2288905370, US68205LAS25), with pricing to be based on the 2 7/8% U.S. Treasury due May 15, 2032 and a maximum purchase spread of 330 bps; and

• $1.05 billion outstanding 7 3/8% notes due 2032 (ISIN: XS2234859283, US68205LAE39), with pricing to be based on the 2 7/8% U.S. Treasury due May 15, 2032 and a maximum purchase spread of 355 bps.

Pricing will be set through a modified Dutch auction procedure and will be determined at 10 a.m. ET on June 29.

Holders may submit a non-competitive tender instruction or a competitive tender instruction. A non-competitive tender instruction is a tender instruction that does not specify a purchase spread or specifies a purchase spread greater than or equal to the relevant maximum purchase spread. Each non-competitive tender will be deemed to have specified the relevant maximum purchase spread for the relevant notes.

A competitive tender instruction is a tender instruction that specifies a purchase spread of less than the relevant maximum purchase spread. Purchase spreads may only be specified in increments of 1 bp below the relevant maximum purchase spread in such competitive tender instructions.

The minimum purchase spread will be 1 bp for each series of notes. Noteholders should not rely on the minimum purchase spread when submitting competitive instructions as an indication of the final clearing spread for the notes. The final clearing spread may be significantly greater than the minimum purchase spread, the issuer noted.

Tenders must be submitted by 5 p.m. ET on June 28. Settlement is slated for July 1.

Tenders must be submitted in minimum denominations of $200,000 principal amount and integral multiples of $1,000 above that. Noteholders who tender less than all of their notes must continue to hold those other notes in principal amounts at least equal to their minimum denomination.

Scaling may be applied if the overall tender cap is reached.

The issuer said it is making the offers as part of its proactive debt management strategy.

Citigroup Global Markets Ltd. (liabilitymanagement.europe@citi.com or +44 20 7986 8969), Goldman Sachs International (Liabilitymanagement.eu@ny.email.gs.com or +44 20 7774 4836) and HSBC Bank plc (LM_EMEA@hsbc.com or +44 20 7992 6237) are dealer managers for the offer.

Citibank, NA, London Branch (citiexchanges@citi.com or +44 20 7508 3867) is the tender agent.

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