China’s ENN Energy opens Dutch tender offer for $300 million 6% bonds

By Wendy Van Sickle

Columbus, Ohio, Nov. 14 – ENN Energy Holdings Ltd. began a modified Dutch auction tender offer for up to $300 million of its $750 million of 6% bonds due May 13. 2021, according to a company announcement.

Holders who tender their notes must specify a maximum spread above the 1.25% U.S. Treasury note due Oct. 31, 2021 they would accept to determine the total consideration. The maximum spread must be between 125 basis points and 145 bps.

Holders who tender by the early participation date will receive an early premium of $30 per $1,000 principal amount.

The early participation date will be 5 p.m. ET on Nov. 28.

Tenders may be withdrawn through the early date.

The tender offer will end at 11:59 p.m. ET on Dec. 12.

The company will also pay accrued interest.

Bonds repurchased through the offer will be canceled.

The company said the offer is being made to reduce foreign-exchange risk and to optimize the group’s capital structure.

Nomura International (Hong Kong) Ltd. (liability.management@nomura.com or +44 (0) 20 7103 6597) and HSBC Ltd. (+852 2822 4100, 212 525 5552 or liability.management@hsbcib.com) are the dealer managers. Lucid Issuer Services Ltd. (ennenergy@lucid-is.com or +44 (0) 20 7704 0880) is the tender agent.

ENN Energy is a Lanfang, China-based investment holding company that invests in, operates and manages gas pipeline infrastructure and sells and distributes gas.

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