Slovenia begins tender, exchange offers for 5½% notes, 5.85% notes

By Susanna Moon

Chicago, Sept. 12 – The Republic of Slovenia is tendering for up to $400 million of two series of its notes by modified Dutch auction and also is offering to swap out the notes for a new issue.

Specifically, the company is offering to purchase up to $200 million of its $823,217,000 outstanding ($2.25 billion) 5½% notes due 2022 and up to $200 million of its $779,294,000 outstanding ($2.5 billion) 5.85% notes due 2023.

In the exchange offers, Slovenia is offering to issue 5¼% dollar-denominated notes due 2024 to be consolidated and form a single series with the $839,592,000 of outstanding $2 billion 5¼% notes due 2024.

The offers will remain open until 11 a.m. ET on Sept. 19, with settlement set for Sept. 27.

Pricing will be set at 5 a.m. ET on Sept. 20 using the 1.625% U.S. Treasury note due August 2022 plus a maximum spread of 55 basis points for the 2022 notes and 65 bps for the 2023 notes.

Holders also will receive accrued interest.

The new notes spread is 40 bps, and the reference security is the 2.25% U.S. Treasury note due August 2027.

Tender instructions may be submitted on a non-competitive or a competitive basis. Non-competitive instructions are ones that either do not specify a spread for notes or that specify a spread at or above the maximum spread. Competitive instructions specify a spread of less than the maximum spread.

The issuer said it will accept all exchange offers under non-competitive instructions.

The issuer is making the tender offers subject to financing as part of the government’s management of its central government debt, according to an announcement.

The issuer expects to accept tenders for up to $200 million of each note series but said it will determine the allocation of the final amounts using its own discretion and that it reserves the right to accept significantly more, less or none of each series.

The offers contain a financing condition.

The issuer said it plans to issue new euro denominated notes.

The dealer managers are Barclays Bank plc (+44 20 3134 8515, 800 438-3242, 212 528-7581 or eu.lm@barclays.com), Deutsche Bank AG, London Branch (+44 20 7545 8011, 866 627-0391 or 212 250-2955), BNP Paribas (+44 20 7595 8668, 888 210-4358, 212 841-3059 or liability.management@bnpparibas.com), Goldman Sachs International Bank (+44 20 7774 9862, 800 828-3182, 212 902-6595 or liabilitymanagement.eu@gs.com) and J.P. Morgan Securities plc (+44 20 7134 2468, 866 834-4666, 212 834-3617 or em_europe_lm@jpmorgan.com).

Lucid Issuer Services Ltd. (+44 20 7704 0880 or slovenia@lucid-is.com) is the information, tender and exchange agent.

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