Generali to buy back €599.98 million of notes callable in 2022

By Marisa Wong

Los Angeles, July 7 – Assicurazioni Generali SpA announced it received aggregate tenders for €778,381,340 equivalent of notes as of the expiration of its tender offer on three series of subordinated notes with first call dates in 2022.

Tenders represented about 50% of the €1,553,911,000 equivalent aggregate principal amount of notes outstanding, according to a company press release.

Generali will accept for purchase €599,976,820 equivalent of notes from the three series as follows:

• €516.7 million of the €1.25 billion 7.75% fixed-to-floating notes due December 2042 (ISIN: XS0863907522), using a proration factor of 100%, at a purchase price of 116.25, leaving €467.6 million principal amount outstanding;

• £75.35 million of the £495 million 6.416% fixed-to-floating perpetual subordinated notes (ISIN: XS0283627908), using a proration factor of 46.47%, at a purchase price of 106.625, leaving £167.15 million principal amount outstanding; and

• None of the €750 million 10.125% fixed-to-floating notes due July 2042 (ISIN: XS0802638642), leaving €301.6 million principal amount outstanding. The euro 10.125% notes would have been purchased at 118.5.

The 7.75% euro-denominated notes had a priority acceptance level of 1, and the sterling-denominated notes and the 10.125% euro-denominated notes shared a priority acceptance level of 2.

The exchange rate used for the sterling-denominated bonds was 1.1052.

The tender offer, which is conditioned on completion of a new notes offering, is expected to settle on July 14, the settlement date for the new notes.

Generali said it priced on Monday €600 million of green bonds due 2031.

The purpose of the buyback offer and the offering of green bonds is to further extend the average maturity of the company’s external debt and to further reduce annual gross interest expense, according to the release.

Barclays Bank plc, Citigroup Global Markets Ltd., Deutsche Bank AG, Mediobanca – Banca di Credito Finanziario SpA, Merrill Lynch International and Natixis are dealer managers for the tender offer.

Lucid Issuer Services Ltd. is the tender agent.

Generali is a Trieste, Italy-based insurance and asset management provider.

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