Spain’s Naturgy tenders for up to €400 million of six series of notes

By Susanna Moon

Chicago, Oct. 11 – Naturgy Capital Markets, SA, formerly Gas Natural Capital Markets, SA, and Naturgy Finance BV, formerly, Gas Natural Fenosa Finance BV, is tendering for up to €400 million of six series of notes.

The notes are guaranteed by Naturgy Energy Group, SA, formerly Gas Natural SDG, SA.

The tender offer will end at 11 a.m. ET on Oct. 18.

The purchase yield for the first five series of notes will be as follows for a purchase price assuming a settlement date of Oct. 22:

• Negative 0.3% for Natural Capital’s €292.4 million of outstanding €500 million 5.375% guaranteed notes due May 2019 for a purchase price of 103.337, or €103,337.16 for each €100,000 principal amount;

• Negative 0.3% for Natural Capital’s €356.2 million of outstanding €500 million 6.375% guaranteed notes due July 2019 for a purchase price of 104.769, or €52,384.50 for each €50,000 principal amount;

• Negative 0.25% for Natural Capital’s €686.25 million of outstanding €850 million 4.5% guaranteed notes due January 2020 for a purchase price of 106.031, or €53,015.25 for each €50,000 principal amount;

• Negative 0.25% for Natural Capital’s €434.4 million of outstanding €800 million 6% guaranteed notes due January 2020 for a purchase price of 107.935%, or €107,934.89 for each €100,000 principal amount; and

• Negative 0.1% for Naturgy Finance’s €500 million 3.5% guaranteed notes due April 15, 2021 for a purchase price of 108.942, or €108,942.02 for each €100,000 principal amount.

Pricing for Natural Capital’s €630.85 million of outstanding €750 million 5.125% guaranteed notes due November 2021 will be set using the November 2021 interpolated mid-swap rate minus 5 basis points.

Holders also will receive accrued interest up to but excluding the settlement date of Oct. 22.

The offers are being made to use “cash on hand efficiently and to reduce gross debt,” according to a company announcement.

The transaction also provides some liquidity to noteholders whose notes are repurchased in the offer, the company added.

The joint dealer managers are Barclays Bank plc (+44 0 20 3134 8515 or eu.lm@barclays.com), CaixaBank, SA (+34 91 700 56 08 / 09 / 10, mlafont@caixabank.com, araguilar@caixabank.com, natalia.garcia@caixabank.co and lst.originacion.rf@lacaixa.es) and Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com).

The tender agent is Lucid Issuer Services Limited. (+44 207 704 0880 or naturgy@lucid-is.com).

Naturgy issues preference shares and other financial debt instruments, with the guarantee of Gas Natural SDG, SA. The company is based in Barcelona.

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