Vodafone wraps tenders for $1.33 billion 2021, 2022, 2023 notes

By Marisa Wong

Morgantown, W.Va., June 19 – Vodafone Group plc announced the results of its 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.

As of 5 p.m. ET on June 18, the expiration of the offers, holders had tendered $227,569,000 of the 2021 notes, $402,755,000 of the 2022 notes and $704,481,000 of the 2023 notes.

The amounts include $1,675,000 of 2021 notes, $8.73 million of 2022 notes and $3,226,000 of 2023 notes that remain subject to guaranteed delivery procedures.

The company will accept the tendered notes for purchase on June 20.

As announced on Tuesday, the consideration for each series of notes was determined using the reference yield of the bid-side price of the applicable reference security plus a fixed spread, calculated at 11 a.m. ET on June 18.

Vodafone is offering a consideration per $1,000 principal amount of

• $1,038.92 for the 2021 notes, based on the 2.375% U.S. Treasury due March 15, 2021 and a fixed spread of 20 basis points;

• $1,003.26 for the 2022 notes, based on the 2.125% U.S. Treasury due May 15, 2022 and a fixed spread of 60 bps; and

• $1,015.26 for the 2023 notes, based on the 2% U.S. Treasury due May 31, 2024 and a fixed spread of 70 bps.

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.

On June 12, the company priced an offering of $1.75 billion of 4.875% notes due 2049 and $500 million of 5.125% notes due 2059, proceeds of which will be used to fund the tender offers. The new notes are expected to settle on Wednesday.

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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