By Toni Weeks
San Luis Obispo, Calif., March 12 - Pitney Bowes Inc. announced the early tender results for its cash tender offers for some of its $450 million of 4.875% medium-term notes due 2014, $400 million of 5% notes due 2015 and $500 million of 4.75% medium-term notes due 2016, according to a company news release.
As of 5 p.m. ET on March 11, the company had received tenders for $148,446,000 of the 4.875% notes, $124,496,000 of the 5% notes and $128,814,000 of the 4.75% notes.
In addition, the company said it has increased the tender cap for the 4.75% notes to $130 million from $75 million. The company will purchase no more than $200 million of the 4.875% notes and no more than $140 million of the 5% notes. These caps were increased on Feb. 27 from $160 million for the 4.875% notes, $100 million for the 5% notes and $50 million for the 4.75% notes.
Pitney Bowes said it expects it will accept for purchase all of the notes tendered thus far.
As previously reported, the total purchase price per $1,000 principal amount will be $1,059.80 for the 4.875% notes, $1,068.95 for the 5% notes and $1,064.09 for the 4.75% notes.
These payments include a $30.00 early tender premium for each note tendered by the March 11 early tender time.
The company will also pay accrued interest up to but excluding the applicable settlement date.
Pricing for the offers was set using the yield to maturity of a reference security plus a fixed spread. More details are noted in the table below.
The tender offers began Feb. 26 and will end at 11:59 p.m. ET on March 25.
The company has an early settlement option for notes tendered by the early tender time. In addition, if the amount of a series of notes tendered by the early tender time meets or exceeds the cap for that series, no additional notes of that series will be accepted for purchase after the early tender time.
No offer is conditioned on any other offer or on the receipt of any minimum principal amount of notes.
Goldman Sachs & Co. (800 828-3182 or collect 212 357-6436) and J.P. Morgan Securities LLC (866 834-4666 or collect 212 834-2494) are the joint dealer managers. Global Bondholder Services Corp. (866-470-4200 or, for banks and brokers, 212 430-3774) is the tender and information agent.
Pitney Bowes is a Stamford, Conn.-based provider of postage equipment and services.
Pitney Bowes tender offers pricing information
| Notes | Reference security | Reference yield | Fixed spread | Total consideration
|
| 4.875% notes due 2014 | 0.25% Treasury due Jan. 31, 2015 | 0.252% | 40 bps | $1,059.80
|
| 5% notes due 2015 | 0.25% Treasury due Jan. 31, 2015 | 0.252% | 125 bps | $1,068.95
|
| 4.75% notes due 2016 | 0.375% Treasury due Feb. 15, 2016 | 0.402% | 200 bps | $1,064.09
|
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