SRV accepts tenders for €28.3 million of hybrid bonds issued in 2012

By Wendy Van Sickle

Columbus, Ohio, March 17 – SRV Group plc said it accepted for purchase all €28.3 million of validly tendered bonds in its offer to buy back its outstanding €45 million hybrid bonds issued in 2012.

The cash purchase price will be €104,000 per each €100,000 principal amount, plus accrued interest to but excluding the settlement date, according to a press release.

The tender offer ended at 11 a.m. ET on Wednesday. Settlement is expected on March 22.

The repurchased bonds will be canceled.

As previously reported, the hybrid bond allows SRV to exercise an early redemption option in December 2016.

Danske Bank A/S, Pohjola Bank plc and Nordea Bank Finland plc acted as joint lead managers. Danske Bank Oyj acted as tender agent, and Danske Bank Oyj and Pohjola Bank plc acted as the dealer managers.

SRV placed a new €45 million issue of hybrid bonds, upon which the tender offer was conditioned, on March 9. Those notes will be issued on or about March 22.

A hybrid bond is an instrument that is subordinated to the company’s other debt obligations and is treated as equity in the group’s IFRS financial statements.

SRV also placed a new €100 million issue of bonds on March 16. Those notes will be issued on or about March 23.

SRV is an Espoo, Finland-based construction company.

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