By Toni Weeks
San Luis Obispo, Calif., March 26 - Pitney Bowes Inc. announced the final results for its cash tender offers for a portion 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. The offer began Feb. 26.
As of 11:59 p.m. on March 25, noteholders tendered
• $150.43 million of the 4.875% notes, $1,984,000 more than the $148,446,000 tendered by the March 11 early deadline;
• $125,121,000 of the 5% notes, $625,000 more than the $124,496,000 tendered by the early deadline; and
• $129,086,000 of the 4.75% notes, $272,000 more than the $128,814,000 tendered by the early deadline.
The company said in the release that it will accept for purchase all of the notes tendered after the early deadline. Payment for these "later tender notes" is expected on March 26.
In addition, the company accepted all notes tendered by the early deadline. Payment for these notes was made on March 12.
The company previously increased the tender cap for the 4.75% notes to $130 million from $75 million. The company planned to 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.
As previously reported, the total purchase price per $1,000 principal amount was $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 included a $30.00 early tender premium for each note tendered by the March 11 early tender deadline. The purchase price for the later tender notes is $1,029.80, $1,038.95 and $1,034.09, respectively.
The company is also paying 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.
If the amount of a series of notes tendered by the early tender time met or exceeded the cap for that series, no additional notes of that series were to be accepted for purchase after the early tender time. In addition, no offer was 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) were the joint dealer managers. Global Bondholder Services Corp. (866-470-4200 or, for banks and brokers, 212 430-3774) was 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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