Oman gets tenders for $1.02 billion of notes from eight series

By Marisa Wong

Los Angeles, June 29 – The Government of the Sultanate of Oman, represented by the Ministry of Finance, announced the indicative results of its cash tender offer for eight series of notes up to a maximum purchase price of $1.75 billion, according to a notice on Wednesday.

The issuer had received tenders for $1,020,042,000 aggregate principal amount of notes as of the expiration deadline at 5 p.m. ET on June 28.

The issuer said it expects to accept for purchase $701,076,000 of the notes. The final acceptance amount will be confirmed after pricing is set.

The issuer expects to accept for purchase the following notes:

• $100,844,000 of the $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. The clearing spread is expected to be set at 210 bps;

• $113,502,000 of the $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. The clearing spread is expected to be 240 bps;

• $71,207,000 of the $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. The clearing spread is expected to be 250 bps;

• $80,823,000 of the $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. The clearing spread is expected to be 270 bps;

• $115.76 million of the $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. The clearing spread is expected to be 280 bps;

• $78,432,000 of the $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. The clearing spread is expected to be 300 bps;

• $112,965,000 of the $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. The clearing spread is expected to be 315 bps; and

• $27,543,000 of the $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. The clearing spread is expected to be 355 bps.

Pricing, set through a modified Dutch auction procedure, was to be determined at 10 a.m. ET on June 29.

Holders had to 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 could only be specified in increments of 1 bp below the relevant maximum purchase spread in such competitive tender instructions.

The minimum purchase spread was 1 bp for each series of notes. Noteholders could 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 previously noted.

Tenders had to be submitted in minimum denominations of $200,000 principal amount and integral multiples of $1,000 above that. Noteholders who tendered 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.

Settlement is slated for July 1.

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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