Swedish Match buys €100 million 3.875% notes in oversubscribed offer

By Susanna Moon

Chicago, Sept. 21 – Swedish Match AB said investors had tendered €177,693,000 of its €313.9 million outstanding 3.875% notes due Nov. 24, 2017 in the offer that ended at 11 a.m. ET on Sept. 20.

Swedish Match accepted for purchase €100 million of the notes using a scaling factor of 56.395%, according to a company update.

The purchase price will be 104.654% of par assuming a settlement date of Sept. 23 plus accrued interest.

Pricing was set using a fixed purchase yield of negative 0.1%, with the purchase price intended to reflect a yield to maturity of the notes on the settlement date based on the purchase yield. If the settlement date changes, the purchase price will be recalculated.

As announced Sept. 13, the company was offering to purchase up to €100 million of the notes but had reserved the right to accept more or less than the offer cap.

After the purchase, there will be €213,900,000 of the notes left outstanding.

“The offer is being made as part of the company’s commitment to the active management of its balance sheet,” according to a previous company announcement.

The company originally issued €350 million of the notes.

The company plans to price new euro-denominated notes, and the tender offer was contingent on the issue of those notes.

Deutsche Bank AG, London Branch (+44 20 7545 8011 or liability.management@db.com) and Skandinaviska Enskilda Banken AB (publ) (+46 8 506 232 09 or liabilitymanagement@seb.se) are the dealer managers. Deutsche Bank (+44 20 7547 5000 or xchange.offer@db.com) is also the tender agent.

Swedish Match is a Stockholm-based company that produces smokeless tobacco products, cigars, pipe tobacco and light products.

© 2015 Prospect News.
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