Sandvik starts tender offer for €200 million of 6.875% notes due 2014

By Susanna Moon

Chicago, Sept. 22 - Sandvik AB said it began a tender offer for up to €200 million of its outstanding €600 million of 6.875% notes due Feb. 25, 2014.

Holders may tender notes until 11 a.m. ET on Sept. 28, the expiration date.

Pricing will be set at 9 a.m. ET on Sept. 29. The interpolated mid-swap rate will be 35 basis points.

If holders tender more than the offer cap, notes will be purchased on a pro rata basis.

The offer will be conditioned on the issue of new euro-denominated fixed-rate notes.

The rationale for the tender offer is to proactively manage the company's debt maturity profile, Sandvik said in a company announcement with the London Stock Exchange.

J.P. Morgan Securities Ltd. (attn: corporate syndicate / liability management, e-mail emea_lm@jpmorgan.com / corp_syndicate@jpmorgan.com), Skandinaviska Enskilda Banken AB (attn: Niklas Lindkvist, e-mail: liabilitymanagement@seb.se) and Royal Bank of Scotland plc (attn: liability management, e-mail: liabilitymanagement@rbs.com) are the dealer managers for the tender offer and joint lead managers for the offering of the new fixed-rate notes.

Citibank, NA, London Branch (attn: exchange team - agency and trust, e-mail exchange.gats@citi.com) is the tender agent.

Sandvik AB is an engineering company based in Sandviken, Sweden.

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