Atlas Copco begins €275 million tender offer for 4.75% notes due 2014

By Angela McDaniels

Tacoma, Wash., Aug. 28 - Atlas Copco AB began a tender offer for its €600 million of 4.75% fixed-rate notes due June 5, 2014, according to a company filing with the London Stock Exchange.

The company said it will spend no more than €275 million to repurchase the notes, excluding accrued interest.

If the amount of notes tendered would cause the company to spend more than €275 million, it will accept notes for purchase on a pro rata basis.

The offer will expire at 11 a.m. ET on Sept. 6.

The purchase price will be the value of all remaining payments of principal and interest on the notes up to and including the scheduled maturity date, discounted to the settlement date, Sept. 11, at a discount rate equal to the purchase yield, minus accrued interest. The purchase yield is the interpolated rate minus 45 basis points. Pricing will be set around 6 a.m. ET on Sept. 7.

The company will also pay accrued interest.

Notes repurchased in the offer will be canceled.

The dealer managers are Citigroup Global Markets Ltd. (44 20 7986 8969 or liabilitymanagement.europe@citi.com), Deutsche Bank AG, London Branch (44 20 7545 8011 or liability.management@db.com) and Skandinaviska Enskilda Banken AB (publ) (46 8 50623 083 or liabilitymanagement@seb.se). The tender agent is Lucid Issuer Services Ltd. (44 207 704 0880 or atlascopco@lucid-is.com).

Atlas Copco makes compressors, construction and mining tools and equipment, power tools and assembly systems. The company is based in Stockholm.

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