Orange sets tender offer cap for subordinated perpetuals at €1 billion

By Marisa Wong

Los Angeles, April 6 – Orange SA announced that the maximum acceptance amount of its tender offer to purchase its outstanding €1 billion undated 10-year non-call deeply subordinated fixed-to-reset rate notes with first call date on Feb. 7, 2024 (ISIN: XS1028599287) will be €1 billion.

The maximum acceptance amount was set equal to the principal amount of new euro-denominated hybrid notes that Orange priced on Wednesday. The company priced €1 billion undated seven-year non-call deeply subordinated fixed-to-reset rate notes with a fixed coupon of 5.375%.

The tender offer began on April 5 and will expire at 11 a.m. ET on April 13, and the results will be announced on April 14.

The purpose of the tender offer and the new notes issuance is, among other things, to proactively manage the company’s hybrid portfolio. The tender offer also gives holders the opportunity to sell their existing notes ahead of the upcoming first call date and to apply for priority in the allocation of the new notes.

The company noted that its intention is to keep the aggregate size of its stock of hybrid notes unchanged.

The telecommunications company is based in Paris.

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