GDF Suez reports final results of tender offer for five note series

By Toni Weeks

San Luis Obispo, Calif., Dec. 5 – GDF Suez announced the final results of its tender offer for up to €750 million of notes from five series. The offer began Nov. 27 and ended at 10 a.m. ET on Dec. 4.

According to a press release, the company accepted

• €87,071,000 of its €651,284,000 of 2.75% notes due October 2017 with a pro-rating factor of 1 and a price of 107.669;

• £174.65 million of its £700 million of 6.125% notes due February 2021 with a pro-rating factor of 0.55 and a price of 123.325;

• €88,673,000 of its €750 million of 2.625% notes due July 2022 with a pro-rating factor of 0.37 and a price of 113.405;

• €238,111,000 of its €1 billion of 3.5% notes due October 2022 with a pro-rating factor of 1 and a price of 119.957; and

• None of €1 billion of 3% notes due February 2023 with a pro-rating factor of zero and a price of 115.769.

Pricing for the notes was set using a spread over a benchmark. For the 2.75% notes it was the 0.263% mid-swap rate minus 20 basis points; for the 6.125% notes it was the 1.762% mid-swap rate plus 30 bps; for the 2.625% notes it was the 0.732% mid-swap rate plus 7 bps; for the 3.5% notes it was the 0.762% mid-swap rate plus 10 bps; and for the 3% notes it was the 0.797% mid-swap rate plus 18 bps.

The tender prices were announced at 8 a.m. ET on Dec. 5.

GDF Suez will also pay accrued interest up to but excluding the settlement date, expected to be Dec. 9.

Accrued interest came to 0.392% for the 2.75% notes, 5.051% for the 6.125% notes, 1.021% for the 2.625% notes, 0.499% for the 3.5% notes and 2.556% for the 3% notes.

GDF Suez said the purpose of the tender is to optimize its cost of debt and its balance-sheet structure.

BofA Merrill Lynch (+44 20 7995 3715, +44 20 7995 2929, john.m.cavanaugh@baml.com or kulwant.bhatti@baml.com) and Societe Generale (+33 1 42 13 32 40 or liability.management@sgcib.com) were joint dealer managers and structuring advisors, and ING Bank NV, Belgian Branch (+31 20 563 2132 or liabilitymanagement@ing.be), Mizuho International plc (+44 20 7090 6474 or liabilitymanagement@uk.mizuho-sc.com) and UniCredit Bank AG (+49 89 378 13722 or corporate.lm@unicredit.de) were joint dealer managers. Lucid Issuer Services Ltd. (+44 20 7704 0880 or gdfsuez@lucid-is.com) was the information agent.

GDF Suez is an electric utility based in Paris.

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