Veolia sees early tenders for $164.42 million 6.75% notes due 2038

By Marisa Wong

Los Angeles, Dec. 11 – Veolia Environnement SA said holders had tendered $164,422,000 of its $400 million 6.75% notes due 2038 as of 5 p.m. ET on Dec. 10, the early participation date of its offer to purchase for cash up to $100 million of the notes.

Because the amount tendered exceeds the offer cap, the company will accept the early tendered notes for purchase on a prorated basis. The company will use a single proration factor of 61.5845%, according to a Wednesday press release.

The offer is still set to expire at 5 p.m. ET on Jan. 3. However, because the maximum tender amount has already been reached, the company will not accept for purchase any notes tendered after the early participation date.

The price paid in the tender offer will be determined based on the yield to maturity corresponding to the bid-side price of the 2.25% Treasury due Aug. 15, 2049 plus a fixed spread of 130 basis points. Pricing will be set at 10 a.m. ET on Dec. 11.

Holders who tender their notes by the early participation date will be eligible to receive the total consideration, which includes an early tender premium equal to $50 per $1,000 principal amount of notes. Holders who tender their notes after the early participation date will receive the tender consideration minus the early tender premium.

Holders will also receive accrued interest.

Tenders may no longer be withdrawn.

Final settlement is scheduled for Jan. 7.

The dealer managers are Citigroup Global Markets Ltd. (800 558-3745 toll free or +44 20 7986 8969) and MUFG Securities Americas Inc. (877 744-4532 toll free or +44 20 7577 4048/4218).

Global Bondholder Services Corp. (866 470-4200) is the information agent.

The tender offer is being made concurrently with the closing of the previously announced sale of the company’s district energy assets in the United States through its subsidiary, Veolia Energy North America Holdings, Inc., as previously announced.

The company said the purpose of the offer is to reduce its outstanding debt and interest expense.

Veolia is an environmental services provider based in Paris.

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