By Susanna Moon
Chicago, Feb. 28 – The Republic of Slovenia said it accepted for purchase $459.82 million principal amount of three series of notes in the modified Dutch auction offer that ended at 11 a.m. ET on Feb. 27.
In the exchange offers for the same issues, the issuer plans to accept for exchange $112,559,000 principal amount of the 2022 notes and the 2023 notes and accept the notes for exchange on a non-competitive basis only, according to an announcement.
In exchange, Slovenia will issue $114,177,000 of new 2024 notes at 110.405 to yield 3.308%. Pricing was set using the 2.375% U.S. Treasury due January 2023 plus 65 basis points for a reference rate of 2.658%.
As announced Feb. 20, the issuer was tendering for its $452.14 million of outstanding $2.25 billion 5½% notes due 2022, $293,358,000 of outstanding $2.5 billion 5.85% notes due 2023 and $1,368,381,000 of outstanding $2,528,789,000 5¼% notes due 2024.
The issuer said it would purchase up to $200 million principal amount of the 2022 notes, up to $150 million principal amount of 2023 notes and up to $300 million principal amount of the 2024 notes.
Pricing was set as follows using a clearing spread at the maximum spread:
• For the 2022 notes, the clearing spread was 40 bps for a purchase price of 110.477% of par using a reference rate of 2.658% and purchase yield of 3.058% and an exchange value of 100.065214;
• For the 2023 notes, the clearing spread was 45 bps for a purchase price of 113.009% of par using a reference rate of 2.658% and purchase yield of 3.108% and an exchange value of 102.358589; and
• For the 2024 notes, the clearing spread was 55 bps for a purchase price of 110.974% of par using a reference rate of 2.658% and purchase yield of 3.208%.
Pricing was set at 8 a.m. ET on Feb. 28 using the 2.375% U.S. Treasury due January 2023 as a reference security and a clearing spread based on a separate modified Dutch auction with a maximum spread of 40 bps for the 5½% notes, 45 bps for the 5.85% notes and 55 bps for the 5¼% notes.
Slovenia took in tenders for its $135,277,000 of the 5½% notes, $91,985,000 of the 5.85% notes and $232,558,000 of the 5¼% notes.
The issuer also accepted for exchange $44,353,000 of the 2022 notes and $68,206,000 of the 2023 notes.
Slovenia also offered to exchange the 2022 notes and 2023 notes for dollar-denominated 5½% notes due 2024, to be consolidated and form a single series with the existing 2024 notes.
In addition, the issuer allowed holders to tender as their first preference all of the 2022 notes and 2023 notes and exchange them as their second preference to the extent any 2022 notes and 2023 notes are not accepted for purchase in the tender, the release noted.
Holders also will receive accrued interest.
The issuer previously said it was making the tender offers using proceeds of new financing as part of the republic’s management of its central government debt.
The issuer was offering to exchange the notes as part of its management of its central government debt and also to provide investors an opportunity “to move into a more liquid security,” the previous release noted.
Slovenia plans to issue new euro-denominated notes and the tender offer was contingent on closing of that issue whereas the exchange offer was not.
As reported, the issuer launched a triple-tranche tap on Wednesday of its 1% euro notes due 2028, 1½% euro notes due 2035 and 3 1/8% euro notes due 2045 with order books of more than €4 billion.
Barclays Bank plc (+44 20 3134 8515, 800 438 3242, 212 528 7581eu.lm@barclays.com), Deutsche Bank AG, London Branch (+44 20 7545 8011, 866 627 0391 or 212 250 2955), Goldman Sachs International Bank (+44 20 7774 9862, 800 828 3182 or 212 902 6595 or liabilitymanagement.eu@gs.com), HSBC Bank plc (+44 20 7992 6237, 888 HSBC-4LM, 212 525-5552 or liability.management@hsbcib.com) and J.P. Morgan Securities plc (+44 20 7134 2468, 866 834 -4666, 212 834-3617 or em_europe_lm@jpmorgan.com) are the dealer managers. Lucid Issuer Services Ltd. (+44 20 7704 0880 or slovenia@lucid-is.com) is the information, tender and exchange agent.
New notes
| Issuer: | Slovenia
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| Issue: | Notes
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| Amount: | $114,177,000
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| Maturity: | 2024
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| Price: | 110.405
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| Yield: | 3.308%
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| Pricing date: | Feb. 28
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| Settlement date: | March 7
|
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