Oman prices any-and-all tender offer for 4.397% trust certificates

By William Gullotti

Buffalo, N.Y., Sept. 19 – The Government of the Sultanate of Oman, represented by the Ministry of Finance, priced the any-and-all cash tender offer for its $2 billion 4.397% trust certificates due 2024 (ISIN: XS1620176831) issued by Oman Sovereign Sukuk SAOC, according to a press release on Tuesday.

Oman is inviting holders to tender any and all of their certificates for purchase for cash.

The purchase price for the certificates will be $989.11 per $1,000 principal amount of notes, as calculated using the 2½% U.S. Treasury due May 31, 2024 and a fixed spread of 50 basis points.

No updates were provided regarding the related capped tender offers.

Capped offers

As previously reported under the capped offers, Oman is offering to purchase an aggregate principal amount of notes equal to $1.5 billion less the amount of certificates purchased in the any-and-all offer.

The capped offer covers the following notes issued by Oman:

• $1,149,156,000 outstanding of the $1.25 billion 4 7/8% notes due 2025 (ISIN: XS1944412664), with pricing to be based on the 4 1/8% U.S. Treasury due Jan. 31, 2025 and subject to a maximum purchase spread of 55 bps;

• $2,386,498,000 outstanding of the $2.5 billion 4¾% notes due 2026 (ISIN: XS1405777589), with pricing to be based on the 4 1/8% U.S. Treasury due June 15, 2026 and subject to a maximum purchase spread of 90 bps; and

• $1,928,793,000 outstanding of the $2 billion 5 3/8% notes due 2027 (ISIN: XS1575967218), with pricing to be based on the 1 7/8% U.S. Treasury due Feb. 28, 2027 and subject to a maximum purchase spread of 125 bps.

Pricing for the capped offers will be determined under a modified Dutch auction procedure.

The minimum purchase spread for each series will be 1 bp. The issuer said the clearing spread may be significantly greater than the minimum purchase spread.

Oman said it reserves the right to increase or decrease the maximum aggregate note purchase amount at any time.

Scaling may be applied if the amount of notes tendered exceeds the overall cap.

Details

Holders will also receive accrued interest or distribution amounts under each of the offers.

Tenders under the any-and-all offer may be withdrawn at any time prior to the expiration deadline. Tenders under the capped offers are irrevocable except in limited circumstances.

The offers expired at 5 p.m. ET on Sept. 19.

Results for each series will be announced on Sept. 20, and pricing for the capped offers is expected to take place at 10 a.m. ET on Sept. 20.

Tenders under guaranteed delivery procedures are due by 5 p.m. ET on Sept. 21.

Settlement, including settlement of tenders under guaranteed delivery procedures, remains slated for Sept. 22.

The offers are still subject to some conditions.

Upon completion of the offers, the government intends to cancel the securities purchased under the offers.

Oman has appointed J.P. Morgan Securities plc (Em_europe_lm@jpmorgan.com) and Standard Chartered Bank (liability_management@sc.com) as dealer managers.

Morrow Sodali Ltd. (Oman@investor.morrowsodali.com; https://projects.morrowsodali.com/Oman) is the tender agent.

The government said the offers are part of its proactive debt management strategy.

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