BHP Billiton prices buyback of 6.75% dollar notes, 5.625% euro notes

By Taylor Fox

New York, Nov. 23 – BHP Billiton Finance (USA) Ltd. and BHP Billiton Finance Ltd. announced the pricing of their offers to repurchase two series of notes for cash, according to a news release.

As previously reported, BHP Billiton Finance (USA) is offering to repurchase any and all of its $2.25 billion 6.75% subordinated non-call 10-year fixed-rate reset notes due 2075 (ISINs: US055451AX66, USQ12441AB91) guaranteed by BHP Group Ltd. and BHP Group plc.

BHP Billiton Finance Ltd. is offering to repurchase any and all of its €750 million of 5.625% subordinated non-call nine-year fixed-rate reset notes due 2079 (ISIN: XS1309436910) guaranteed by BHP Group plc.

Following the results of a similar tender offer in September, $745,768,000 of the dollar notes and €714,733,000 of the euro notes are outstanding.

The dollar-notes will be repurchased for a consideration of $1,215.93 per $1,000 of notes and the euro notes will be repurchased for a consideration of €1,182.11 per €1,000 of notes, plus interest in both cases.

The purchase prices were calculated using a reference yield of the 0.25% U.S. Treasury security due Oct. 31, 2025 and a spread of 170 basis points for the dollar notes and a reference yield of the interpolated euro mid-swap rate and a spread of 135 bps for the euro notes.

The offers will expire at 5 p.m. ET Nov. 23.

The settlement date is expected for Nov. 27.

The multicurrency plan aims to further reduce the group’s gross debt balance, reduce associated interest costs and enhance the group’s capital structure by allocating surplus cash towards payment of the notes pursuant to the offers.

The lead dealer managers are Deutsche Bank AG, London Branch (+44 20 7545 8011, 866 627-0391, 212 250-2955) and Merrill Lynch International (+44 20 7996 5420, 888 292-0070, 980 387-3907, DG.LM-EMEA@bofa.com), UBS AG London Branch (+44 20 7568 1121) and UBS Securities LLC (888 719-4210, 203 719-4210, +44 20 7568 1121).

The tender and information agent is D.F. King (212 709-3328, +44 20 7920 9700).

BHP Billiton is a diversified natural resources company based in Melbourne, Australia.

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