Iren begins tender offer for up to €150 million 3%, 4.37%, 2.75% notes

By Angela McDaniels

Tacoma, Wash., Oct. 10 – Iren SpA began a tender offer for its €89.1 million outstanding 3% notes due 2019, €185.12 million outstanding 4.37% notes due 2020, €186,273,000 outstanding 3% notes due 2021 and €430,126,000 outstanding 2.75% notes due 2022, according to a filing with the London Stock Exchange.

The company plans to accept no more than €150 million principal of notes in the offer. It will determine the allocation of the cap among each series at its sole discretion. A non-binding indication of the series acceptance amounts is expected to be announced on Oct. 18.

For the 2019 notes and the 2020 notes, the purchase prices will be determined by reference to a fixed purchase yield of zero. Assuming a settlement date of Oct. 25, the purchase price is expected to be 103.896 for the 2019 notes and 112.978 for the 2020 notes.

For the 2021 note and the 2020 notes, the purchase prices will be determined by reference to the sum of the relevant interpolated mid-swap rate and a purchase spread of zero basis points for the 2021 notes and 25 bps for the 2022 notes.

Pricing will be determined at 7 a.m. ET on Oct. 18.

Holders will also receive accrued interest.

The offer will end at 11 a.m. ET on Oct. 17.

Holders must tender at least €100,000 of notes in order to participate.

Subject to favorable market conditions, the company plans to settle a series of new euro-denominated fixed-rate notes on Oct. 24. The proceeds will be partly applied toward financing the tender offer.

The tender offer is subject to the pricing of the new notes and the signing by the company of a subscription agreement with the financial institutions that will subscribe for the new notes.

The company said the tender offer is being made to proactively manage its upcoming redemptions. The dealer managers are Banca IMI SpA (+39 02 7261 5938 or Liability.Management@bancaimi.com), Goldman Sachs International (+44 20 7774 9862 or liabilitymanagement.eu@gs.com), Mediobanca – Banca di Credito Finanziario SpA (+39 02 8829 840 or MB_LM_CORP_IT@mediobanca.com), Societe Generale ( +44 20 7676 7680 or liability.management@sgcib.com) and UniCredit Bank AG (+49 89 378 13722 or corporate.lm@unicredit.de).

The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or iren@lucid-is.com).

Iren is a multi-utility company based in Reggio Emilia, Italy.

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