Orange provides results on tender offers for deeply subordinated notes

Chicago, May 10 – Orange announced the results of its any-and-all offers and a capped tender offer for three series of notes, according to a press release.

Seven-year notes

Orange was offering to buy any and all of the €118,374,000 outstanding of seven-year non-call deeply subordinated fixed-to-reset rate notes with a first call date on Oct. 1, 2021 (ISIN: XS1115490523).

The company received valid tenders for €49,805,000 of the notes and will accept all notes tendered and repurchase the notes at 101.69.

Following settlement, €68,569,000 of the notes will remain outstanding.

Eight-year notes

The company was also offering to purchase any and all of the £427,102,000 outstanding £650 million eight-year non-call deeply subordinated fixed-to-reset rate notes with a first call date on Feb. 7, 2022 (ISIN: XS1028597315).

Noteholders tendered £383,286,000 principal amount of the notes, all of which will be accepted.

The company will pay 104.125 for the notes.

After settlement, £43,816,000 of the notes will be outstanding.

8.5-year notes

Orange was offering to buy up to £135 million of the £560,878,000 outstanding of 8.5-year non-call deeply subordinated fixed-to-reset rate notes with a first call on April 1, 2023 (ISIN: XS1115502988).

The company received tenders for £263,425,000 and did not change the cap, so £135 million of the notes will be repurchased with a proration factor of 49.4136% applied.

The company is paying 108.68 as a purchase price for the notes.

There will be £425,878,000 notes remaining after settlement.

Redemption

Following settlement, over 90% principal amount of the 2021 notes and the 2022 notes will have been repurchased by the company.

The company has the option to redeem the remaining notes and expects to exercise that option.

The notes will be repurchased at par plus interest to the date of redemption.

Details

Funding for the tender offers was expected to come from a new offering of a euro-denominated hybrid note. The company sold €500 million of new eight-year non-call deeply subordinated fixed-to-reset rate notes that will settle on May 11. The notes start with a 1.375% fixed coupon.

The company aims to proactively manage its hybrid portfolio and is taking advantage of favorable market conditions.

The tender expires at 11 a.m. ET on May 6. Settlement is scheduled for May 11.

Orange is a telecommunications company based in Paris.

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