Teollisuuden tenders for €500 million 4 5/8% notes due 2019

By Susanna Moon

Chicago, April 25 – Teollisuuden Voima Oyj said it is tendering for its €500 million of 4 5/8% notes due Feb. 4, 2019 until 11 a.m. ET on May 3.

Pricing for the offer will be set using a fixed purchase yield of negative 0.2%, which would mean a purchase price of €1,036.03 per €1,000 principal amount, or 103.603% of par, assuming a settlement date of May 8, according to a company announcement.

Holders also will receive accrued interest to but excluding the settlement date.

The offer is conditional on the issuer closing its issue of new euro-denominated notes under its €4 billion euro medium-term notes program, the release noted.

The issuer said it may give preference in the allocation of the new issue to holders who tender in the offer and also subscribe for new notes; however, it is not obliged to do so.

“The offer is being made as part of the issuer's commitment to active management of its balance sheet,” the release noted. “The purpose of the offer is to proactively manage the issuer's upcoming redemptions and to lengthen and diversify its debt maturity profile.”

Danske Bank A/S (+45 45 14 32 70 or liabilitymanagement@danskebank.dk) and Royal Bank of Scotland plc (+44 20 7678 5282 or liabilitymanagement@natwestmarkets.com), trading as NatWest Markets, are the dealer managers. Lucid Issuer Services Ltd. (+44 20 7704 0880 or tvo@lucid-is.com) is the tender agent.

Teollisuuden is an electricity company based in Eurajoki, Finland.

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