SNAM noteholders invited to sell up to €2 billion notes to BNP Paribas

By Angela McDaniels

Tacoma, Wash., Oct. 11 – BNP Paribas SA is offering to purchase up to €2 billion of notes issued by SNAM SpA, according to an announcement from BNP Paribas.

The following SNAM notes are eligible for the offer:

• €999,915 of outstanding 2.375% notes due June 30, 2017;

• €1,200,046,000 of outstanding 3.875% notes due March 19, 2018;

• €850.05 million of outstanding 5% notes due Jan. 18, 2019;

• €500 million of outstanding 1.5% notes due April 24, 2019;

• €1.25 billion of outstanding 3.5% notes due Feb. 13, 2020;

• €500 million of outstanding 3.375% notes due Jan. 29, 2021;

• €1 billion of outstanding 5.25% notes due Sept. 19, 2022;

• €750 million of outstanding 1.5% notes due April 21, 2023;

• €750 million of outstanding 1.375% notes due Nov. 19, 2023; and

• €600 million of outstanding 3.25% notes due Jan. 22, 2024.

The €2 billion cap will be allocated among the note series at BNP Paribas’ discretion.

The offer will end at 11 a.m. ET on Oct. 17.

Holders must tender at least €100,000 of notes in order to participate.

For the first seven series of notes, the purchase price will be determined by reference to a purchase yield, which is negative 20 basis points for the 2.375% notes due 2017 and 3.875% notes due 2018, negative 15 bps for the 5% notes due 2019 and 1.5% notes due 2019, negative 10 bps for the 3.5% notes due 2020, negative 5 bps for the 3.375% notes due 2021 and zero for the 5.25% notes due 2022.

Assuming an Oct. 20 settlement date, the purchase price is expected to be 101.788 for the 2.375% notes due 2017, 105.764 for the 3.875% notes due 2018, 111.595 for the 5% notes due 2019, 104.152 for the 1.5% notes due 2019, 111.967 for the 3.5% notes due 2020, 114.665 for the 3.375% notes due 2021 and 131.054 for the 5.25% notes due 2022.

For the remaining notes, the purchase price will be determined at 8 a.m. ET on the business day after the offer expiration by reference to a yield calculated as the sum of 5 basis points and the relevant interpolated reference rate.

BNP Paribas will also pay accrued interest.

SNAM plans to issue a series of new euro-denominated notes, BNP Paribas noted.

The dealer managers are Barclays Bank plc (44 (0)20 3134 8515 or eu.lm@barclays.com), BNP Paribas (44 20 7595 8668 or liability.management@bnpparibas.com), J.P. Morgan Securities plc (44 (0)207 134 2468 or emea_lm@jpmorgan.com), Mediobanca – Banca di Creditor Finanziario SpA (44 2030369653 or MB_LiabilityManagement_CORP@mediobanca.com) and UniCredit Bank AG (49 89 3781 3722 or corporate.lm@unicredit.de).

The tender agent is Lucid Issuer Services Ltd. (44 20 7704 0880 or snam@lucid-is.com).

SNAM is a natural gas infrastructure company based in San Donato Milanese, Italy. BNP Paribas is a financial services company based in Paris.

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