By Toni Weeks
San Luis Obispo, Calif., Nov. 6 – AXA SA announced the final results for its exchange offer for four series of fixed-to-floating-rate undated deeply subordinated notes, according to a company announcement. The exchange offer was announced on Oct. 29 and ended at 10 a.m. ET on Nov. 5.
The company offered euro-denominated undated deeply subordinated resettable notes in exchange for its €1 billion of series 21 notes and €750 million of series 26 notes and pound sterling-denominated undated deeply subordinated resettable notes in exchange for its £500 million of series 22 notes and £700 million of series 27 notes.
According to a company announcement, AXA has accepted for exchange €568,526,000 of series 21 notes and €415,499,000 of series 26 notes. The company will issue €984,025,000 of new euro-denominated notes in exchange.
For the pound-sterling denominated notes, the company has accepted for exchange £243.19 million of series 22 notes and £480,735,000 of series 27 notes and will issue £723,925,000 of new pound sterling-denominated notes in exchange.
The company announced the minimum spreads on Nov. 3 as 290 basis points above mid-swap for the euro-denominated new notes and 300 bps above mid-swap for the pound-sterling-denominated notes. The coupons were set at 4:30 a.m. ET on Nov. 6 resulting in an interest rate of 3.941% for the euro-denominated new notes and 5.453% for the pound sterling-denominated new notes.
As previously announced, holders who exchange will receive a like principal amount of new notes plus an exchange premium in cash plus accrued interest. The exchange premium is 6.75% for the series 21 notes, 5% for the series 22 notes, 12% for the series 26 notes and 9.25% for the series 27 notes, as already noted. The exact exchange premium and accrued interest to be paid at settlement, which is scheduled for Nov. 7, are noted in the table below.
The issue price for the new notes will be par.
The first call date will be Nov. 7, 2024 for the new euro-denominated notes and March 4, 2026 for the new sterling-denominated notes. In contrast, the first call date is July 6, 2016 for the series 21 notes and series 22 notes, Oct. 5, 2017 for the series 26 notes and Oct. 16, 2019 for the series 27 notes.
Holders who participated had to exchange at least €100,000 or £100,000 principal amount of notes.
The structuring advisers and global coordinators were BNP Paribas (+44 20 7595 8668 or liability.management@bnpparibas.com) and HSBC Bank plc (+44 20 7992 6237 or liability.management@hsbcib.com).
The dealer managers were BNP Paribas, Commerzbank AG (+49 69 136 59920 or liability.management@commerzbank.com), Credit Agricole CIB (+44 207 214 6712 or liability.management@ca-cib.com), Deutsche Bank AG, London Branch (+44 20 7545 8011 or liability.management@db.com), HSBC Bank plc (+44 20 7992 6237 or liability.management@hsbcib.com), Natixis (+44 20 3216 9598 or liability.management@natixis.com) and Societe Generale (+33 1 58 98 45 81 or liability.management@sgcib.com).
The exchange and information agent was Lucid Issuer Services Ltd. (Paul Kamminga/Thomas Choquet at +44 207 704 0880 or axa@lucid-is.com).
AXA is a Paris-based insurance company.
| Euro notes | Amount accepted | Accrued interest | Exchange premium
|
| Series 21 | €568,526,000 | €11,157,875.73 | €38,375,505 (6.75%)
|
| Series 26 | €415,499,000 | €2,333,203.17 | €49,859,880 (12%)
|
|
|
| Pound sterling notes | Amount accepted | Accrued interest | Exchange premium
|
| Series 22 | £243.19 million | £5,507,809.81 | £12,159,500 (5%)
|
| Series 27 | £480,735,000 | £1,962,241.80 | £44,467,987.50 (9.25%)
|
|
|
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