Slovenia prices, gives final results of offers for 5½%, 5.85% notes

By Marisa Wong

Morgantown, W.Va., Sept. 20 – The Republic of Slovenia announced the final results and pricing for the cash tender and exchange offers for two series of its notes that expired at 11 a.m. ET on Sept. 19.

The issuer expects to accept for purchase $333,647,000 of notes, including $160,005,000 of 5½% notes due 2022 and $173,642,000 of 5.85% notes due 2023.

The issuer said it intends to accept for purchase only notes tendered on a non-competitive basis without any pro rata scaling and none of the notes tendered under competitive tender instructions.

The issuer also plans to accept for exchange $523,366,000 of notes, including $211,072,000 of the 2022 notes and $312,294,000 of the 2023 notes, and accept for exchange only notes offered on a non-competitive basis.

In an announcement earlier on Wednesday, the issuer said it received tenders for $369,683,000 of notes under the cash offer and $577,175,000 of notes under the exchange offer.

As announced Sept. 12, Slovenia was tendering for up to $400 million of the notes by modified Dutch auction and was also offering to swap out the notes for a new issue.

Specifically, the issuer was offering to purchase up to $200 million of its $823,217,000 outstanding (original $2.25 billion) 2022 notes and up to $200 million of its $779,294,000 outstanding (original $2.5 billion) 2023 notes.

In the exchange offers, Slovenia was 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 republic will issue $528,789,000 of new 2024 notes, according to the latest update.

Pricing for the offers was set at 5 a.m. ET on Sept. 20 using the 1.625% U.S. Treasury note due August 2022 plus a clearing spread. Based on the acceptance amount, the issuer set the clearing spread at the maximum spread of 55 basis points for the 2022 notes and at 65 bps for the 2023 notes.

The purchase price and exchange price is 114.902 for the 2022 notes and 117.636 for the 2023 notes.

Holders also will receive accrued interest.

The price for the new 2024 notes is 115.325, and the yield is 2.629%, based on a spread of 40 bps and the 2.25% U.S. Treasury note due August 2027 as the reference security.

Settlement is slated for Sept. 27.

The offers contain a financing condition. As reported, Slovenia priced €700 million in taps of its notes due March 22, 2027 and Nov. 3, 2040 on Sept. 20.

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.

© 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.