AXA gives minimum spreads for exchange of undated subordinated notes

By Toni Weeks

San Luis Obispo, Calif., Nov. 3 – AXA SA announced the minimum spreads for the new notes it plans to issue in an exchange offer for four series of fixed-to-floating-rate undated deeply subordinated notes, according to a company announcement. The exchange offer was announced on Oct. 29.

The company is offering euro-denominated undated deeply subordinated resettable notes in exchange for its €1 billion of series 21 notes and €750 million of series 26 notes and pound sterling-denominated undated deeply subordinated resettable notes in exchange for its £500 million of series 22 notes and £700 million of series 27 notes.

The new notes minimum spread has been set at 290 basis points above mid-swap for the euro-denominated new notes and 300 bps above mid-swap for the pound-sterling-denominated notes, according to a company announcement.

As previously announced, holders who exchange will receive a like principal amount of new notes plus an exchange premium in cash. The company will also pay accrued interest.

The exchange premium is 6.75% for the series 21 notes, 5% for the series 22 notes, 12% for the series 26 notes and 9.25% for the series 27 notes, as already noted.

The issue price for the new notes will be par. The new notes’ coupons will be set at 4:30 a.m. ET on Nov. 6.

The first call date will be Nov. 7, 2024 for the new euro-denominated notes and March 4, 2026 for the new sterling-denominated notes. In contrast, the first call date is July 6, 2016 for the series 21 notes and series 22 notes, Oct. 5, 2017 for the series 26 notes and Oct. 16, 2019 for the series 27 notes.

The exchange offer will end at 10 a.m. ET on Nov. 5. The settlement date is expected to be Nov. 7.

Holders who wish to participate must exchange at least €100,000 or £100,000 principal amount of notes, as the case may be.

The structuring advisers and global coordinators are BNP Paribas (+44 20 7595 8668 or liability.management@bnpparibas.com) and HSBC Bank plc (+44 20 7992 6237 or liability.management@hsbcib.com).

The dealer managers are BNP Paribas, Commerzbank AG (+49 69 136 59920 or liability.management@commerzbank.com), Credit Agricole CIB (+44 207 214 6712 or liability.management@ca-cib.com), Deutsche Bank AG, London Branch (+44 20 7545 8011 or liability.management@db.com), HSBC Bank plc (+44 20 7992 6237 or liability.management@hsbcib.com), Natixis (+44 20 3216 9598 or liability.management@natixis.com) and Societe Generale (+33 1 58 98 45 81 or liability.management@sgcib.com).

The exchange and information agent is Lucid Issuer Services Ltd. (Paul Kamminga/Thomas Choquet at +44 207 704 0880 or axa@lucid-is.com).

AXA is a Paris-based insurance company.

© 2015 Prospect News.
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