Oman gives results of any-and-all tender offer, acceptance amounts under capped offers

By Mary-Katherine Stinson

Lexington, Ky., Sept. 20 – The Government of the Sultanate of Oman, represented by the Ministry of Finance, announced final results of its Sept. 12 any-and-all cash tender offer for the $2 billion 4.397% trust certificates due 2024 (ISIN: XS1620176831) issued by Oman Sovereign Sukuk SAOC and indicative acceptance amounts and clearing spreads for the related capped tender offers, according to a press release early Wednesday.

As previously reported, Oman invited holders to tender any and all of their certificates for purchase for cash.

As of the expiration deadline, valid tender instructions had been received for $181,935,000 aggregate principal amount of certificates. No certificates were tendered under guaranteed delivery procedures.

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.

After settlement, $1,818,065,000 of the trust certificates will remain outstanding.

Capped offers

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

In total, the government received tender instructions for $1,476,544,000 aggregate nominal amount of notes, including non-competitive and competitive tender instructions.

Oman announced in a press release published later in the day on Wednesday that it intends to accept a total of $546,322,000 nominal amount of notes tendered.

The series acceptance amounts and clearing spreads are as follows:

• For the 2025 notes, the series acceptance amount will be $244.39 million with a clearing spread at 55 basis points; and

• For the 2027 notes, the series acceptance amount will be $301,932,000 with a clearing spread at 125 bps.

For the 2025 and 2027 notes, the acceptance amounts match the amounts tendered with no proration.

The government will not accept any tenders of the 2026 notes and, accordingly, set the series acceptance amount at zero.

As previously reported, the capped offer covers the following notes:

• $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.

The minimum purchase spread for each series was 1 bp.

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

Details

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

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

Pricing for the capped offers took 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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