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Vodafone launches tender offers for dollar, euro capital securities
By Marisa Wong
Los Angeles, May 24 – Vodafone Group plc announced invitations to holders of its outstanding $1.3 billion 6¼% capital securities due 2078 with a first call date on July 3, 2024 (ISIN: XS1888180640) and €2 billion 3.1% capital securities due 2079 with a first call date on Oct. 3, 2023 (ISIN: XS1888179477) to tender their securities for purchase for cash.
The company is offering a purchase price of 100.5 for the dollar securities and 99.75 for the euro securities, along with accrued interest, according to a notice.
Vodafone is offering to purchase up to a maximum amount of the dollar-denominated securities and any and all of the euro-denominated securities.
The maximum acceptance amount for the dollar notes will be equal to the dollar equivalent of (i) the aggregate principal amount of new euro notes to be issued under a concurrent offering plus (ii) the aggregate principal amount of the new sterling notes to be issued under the concurrent offering, converted into euros less (iii) €1.05 billion.
The company priced €750 million and £500 million tranches of hybrid bonds on Wednesday, according to a source.
The tender offers are conditioned on the new financing.
The purpose of the offers as well as the new notes issuance is, among other things, to proactively manage the company’s hybrid capital portfolio. The company expects to both extend a portion of its hybrid capital portfolio and simultaneously reduce its hybrid capital portfolio of about €10 billion by no more than 10% of the current overall hybrid capital portfolio through the offers. The offers also give holders an opportunity to sell their securities ahead of their respective upcoming first call dates and to apply for priority in the allocation of the new notes.
The offers will expire at 11 a.m. ET on June 1.
Settlement is expected to be on June 6.
The dealer managers are BNP Paribas (+33 1 55 77 78 94; liability.management@bnpparibas.com), Merrill Lynch International (+44 20 7996 5420; DG.LM-EMEA@bofa.com) and NatWest Markets plc (+44 20 7678 5282; liabilitymanagement@natwestmarkets.com).
The tender agent is Kroll Issuer Services Ltd. (+44 20 7704 0880; vodafone@is.kroll.com; attn.: Owen Morris; https://deals.is.kroll.com/vodafone).
The telecommunications company is based in London.
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