Oman Telecommunications gives early tenders, prices offer for two notes

By Marisa Wong

Los Angeles, Oct. 19 – Oman Telecommunications Co. SAOG (Omantel) announced the early results of and pricing under its cash tender offer for two series of notes issued by Oztel Holdings SPC Ltd. for a total purchase price of up to $600 million, according to separate press releases on Wednesday.

Omantel has decided to accept for purchase the following notes tendered at or prior to the early tender deadline at 5 p.m. ET on Oct. 18, with the series listed in order of acceptance priority:

• $211,079,000 of the $900 million 6 5/8% secured notes due April 2028 (ISIN: US692733AB47, XS1805476659) at $978.06 per $1,000 principal amount, with pricing calculated based on the 4 1/8% U.S. Treasury due Sept. 30, 2027 and a fixed spread of 280 basis points; and

• $140,509,000 of the $600 million 5 5/8% secured notes due October 2023 (ISIN: US692733AA63, XS1805474951) at $992.40 per $1,000 principal amount, with pricing calculated based on the 4¼% U.S. Treasury due Sept. 30, 2024 and a fixed spread of 190 bps.

In an earlier notice on Wednesday, Omantel initially announced an indicative acceptance amount of $210,779,000 for the 2028 notes.

The considerations listed above include an early tender payment of $30 per $1,000 principal amount of notes tendered by the early tender deadline.

Pricing was determined at 10 a.m. ET on Oct. 19.

Holders tendering after the early deadline will only be eligible to receive the late consideration per $1,000 principal amount of $948.06 for the 2028 notes and $962.40 for the 2023 notes.

In addition, holders whose notes are accepted for purchase will receive accrued interest.

After settlement of the early tendered notes on Oct. 24, $688,921,000 of the 2028 notes and $459,491,000 of the 2023 notes will remain outstanding.

The aggregate capacity of the tender offer cap remaining is $248,412,000.

Tenders may no longer be withdrawn.

The offer will expire at 11:59 p.m. ET on Nov. 1.

Final results will be announced on Nov. 2.

Final settlement is slated for Nov. 3.

The offer is subject to a financing condition.

Kroll Issuer Services Ltd. (liability_management@sc.com; +44 20 7885 5739, 212 667-0351; https://deals.is.kroll.com/oztel) is the tender and information agent.

Citigroup Global Markets Ltd. (liabilitymanagement.europe@citi.com;+44 20 7986 8969, 800 558-3745, 212 723-6106), HSBC Bank plc (liability.management@hsbcib.com; +44 20 7992 6237, 888 HSBC-4LM, 212 525-5552) and Standard Chartered Bank (liability_management@sc.com; +44 20 7885 5739, 212 667-0351) are the dealer managers.

The telecommunications company is based in Muscat, Oman.

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