SKF buys 70% of tendered 2.375% notes in capped offer for three series

By Susanna Moon

Chicago, May 17 – SKF AB announced the results of the tender for up to €300 million of three series of notes that ended at 11 a.m. ET on May 16.

Investors had tendered €445,189,000 of the €750 million 2.375% notes due 2020, which has priority over the other two note series, as well as €29,708,000 of its €233.61 million 3.875% notes due 2018 and €69,368,000 of its €265,853,000 1.875% notes due 2019.

SKF will accept €300,001,000 of the 2.375% notes due 2020 using a scaling factor of 69.7467%, according to a company update on Wednesday.

After settlement on May 22, there will be €449,999,000 of the 2.375% notes left outstanding.

The purchase price will be €1,079.09 for each €1,000 principal amount for an aggregate purchase amount of €323,728,079.09.

Holders also will receive accrued interest.

Pricing was set at 6 a.m. ET on May 17 using the 2020 notes interpolated mid-swap rate plus 5 basis points for a reference yield of 0.021% and a purchase yield of 0.071%.

Because the tender was oversubscribed, none of the other two series of notes will be purchased in the offer.

The dealer managers are Deutsche Bank AG, London Branch (+44 20 7545 8011) and Nordea Bank AB (publ) (+45 55 47 42 53 or NordeaLiabilityManagement@nordea.com). The tender agent is Citibank, NA, London Branch (+44 20 7508 3867 or exchange.gats@citi.com).

SKF makes ball and roller bearings and sealing systems. The company is based in Gothenburg, Sweden.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.