Vodafone launches tender offers for 2021, 2022, 2023 notes

By Marisa Wong

Morgantown, Va., June 12 – Vodafone Group plc said it launched offers to purchase for cash any and all of its 4.375% notes due 2021, 2.5% notes due 2022 and 2.95% notes due 2023.

The consideration for each series of notes will be determined using the reference yield of the bid-side price of the applicable reference security plus a fixed spread. The reference security is the 2.375% U.S. Treasury due March 15, 2021 for the 2021 notes, the 2.125% U.S. Treasury due May 15, 2022 for the 2022 notes and the 2% U.S. Treasury due May 31, 2024 for the 2023 notes. The fixed spread is 20 basis points for the 2021 notes, 60 bps for the 2022 notes and 70 bps for the 2023 notes.

Pricing will be calculated at 11 a.m. ET on June 18.

The company will also pay accrued interest.

Concurrently with the launch of the tender offers, the company issued a notice of redemption for any 2021 notes not purchased in the offers. The redemption price will be the greater of par plus accrued interest and the sum of the present values of the remaining scheduled payments of principal and interest discounted to the redemption date on a semiannual basis at Treasuries plus 20 bps.

The tender offers are subject to a financing condition.

The offers expire at 5 p.m. ET on June 18.

Results are expected to be announced on June 19, and settlement is slated for June 20.

Settlement of any notes delivered under guaranteed delivery procedures will be on June 21.

The company said the purpose of the offers is to extend its debt maturity profile in an efficient manner.

Merrill Lynch International (888 292-0070, 980 387-3907, +44 20 7996 5420 or dg.lm_emea@baml.com), Morgan Stanley & Co. LLC (212 761-1057, 800 624-1808 or liabilitymanagement@morganstanley.com), RBC Capital Markets, LLC (877 381-2099, 212 618-7843 or liability.management@rbccm.com) and UBS AG London Branch (+44 20 7568 1121, 888 719-4210, 203 719-4210 or ol-liabilitymanagement-eu@ubs.com) are dealer managers.

Global Bondholder Services Corp. (866 470-3800, 212 430-3774 or contact@gbsc-usa.com) is information and tender agent.

Vodafone is a telecommunications company based in London.

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