SNAM purchases €538 million notes in tender offer for six series

By Wendy Van Sickle

Columbus, Ohio, Dec. 6– SNAM SpA purchased €538 million of notes its tender offer for six series of its notes, according to an announcement.

The following notes were purchased under the offer, which ended at 11 a.m. ET on Dec. 4:

• €107,304,000 of its €633,021,000 outstanding 3.5% notes due Feb. 13, 2020;

• €37.05 million of its €303.59 million outstanding 3.375% notes due Jan. 29, 2021;

• €83,517,000 of its €692,543,000 outstanding 5.25% notes due Sept. 19, 2022;

• €162,995,000 of its €507,726,000 outstanding 1.5% notes due April 21, 2023;

• €128,244,000 of its €390,937,000 outstanding 1.375% notes due Nov. 19, 2023; and

• €19,268,000 of its €413.59 million outstanding of outstanding 3.25% notes due Jan. 22, 2024.

The offer was announced on Nov. 28.

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

The purchase price is 104.369 for the 2020 notes; 107.212 for the 2021 notes; 118.591 for the 2022 notes; 103.101 for the 1.5% 2023 notes; 102.257 for the 1.375% 2023 notes; and 111.01 for the 2024 notes.

For the 2020 and 2021 notes, the purchase price was determined by reference to a purchase yield, which was negative 20 basis points for the 3.5% notes due 2020 and zero for the 3.375% notes due 2021.

For the remaining notes, the purchase price was determined at 8 a.m. ET on Dec. 5 by reference to a yield calculated as the sum of the applicable purchase spread and the relevant interpolated reference rate.

The purchase spread was 20 bps for the 5.25% notes due 2022; 60 bps for the 1.5% notes due 2023; 65 bps for the 1.375% notes due 2023; and 75 bps for the 3.25% notes due 2024.

SNAM will also pay accrued interest.

Settlement is expected to occur on Dec. 10.

SNAM said the transaction is consistent its optimizing of its debt structure and cost of capital.

The company said the tender offer was the fourth and final liability management exercise that, from 2015 to date, contributed to reduce SNAM’s cost of debt to 1.5% expected for 2018 year-end from 2.4% in 2016.

The dealer managers are Banco Bilbao Vizcaya Argentaria, SA (44 20 7648 7156 or liabilitymanagement@bbva.com), BNP Paribas (44 20 7595 8668 or liability.management@bnpparibas.com), Citigroup Global Markets Ltd. (44 207 986 8968 or liabilitymanagement.europe@citi.com), J.P. Morgan Securities plc (44 207 134 2468 or emea_lm@jpmorgan.com) and Mizuho International plc (44 207 090 6673 or liabilitymanagment@uk.mizuho-sc.com).

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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