Spain’s Naturgy to buy €314.35 million notes in tender; pricing set

By Susanna Moon

Chicago, Oct. 19 – Naturgy Capital Markets, SA, formerly Gas Natural Capital Markets, SA, plans to accept for purchase €281.05 million principal amount of notes in the tender offer that ran until 11 a.m. ET on Oct. 18.

Meanwhile, Naturgy Finance BV, formerly Gas Natural Fenosa Finance BV, will purchase €33.3 million principal amount of notes by way of the tender.

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

As announced Oct. 11, Naturgy Capital and Naturgy Finance were tendering for up to €400 million of six series of notes.

The breakdown for the accepted amounts is as follows with the purchase price based on a purchase yield and assuming a settlement date of Oct. 22:

• €55.8 million 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, based on a purchase yield of negative 0.3%;

• €17.5 million of 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, based on a purchase yield of negative 0.3%;

• €88.15 million of 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, based on a purchase yield of negative 0.25%;

• €79.3 million of 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, based on a purchase yield of negative 0.25%; and

• €33.3 million of 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, based on a purchase yield of negative 0.1%.

The company also accepted €40.3 million of Natural Capital’s €630.85 million of outstanding €750 million 5.125% guaranteed notes due November 2021 with the purchase price set at 115.509 using the November 2021 interpolated mid-swap rate minus 5 basis points for a reference yield of 0.056% and a purchase yield of 0.006%. Pricing was set at 8 a.m. ET on Friday.

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 previous 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 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 20 7704 0880 or naturgy@lucid-is.com).

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

© 2015 Prospect News.
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