Terna Rete accepts tenders for €480 million of 4 1/8% notes in offer

By Susanna Moon

Chicago, July 20 – Terna – Rete Elettrica Nazionale SpA said investors had tendered €755.67 million of two series of its notes in the oversubscribed offer that ended at 11 a.m. ET on July 17.

As previously announced, Terna Rete began a tender offer on July 10 for up to €400 million of its €1.25 billion 4 1/8% notes due February 2017 and €750 million 2 7/8% notes due February 2018, with the notes listed in order of priority acceptance level.

The company accepted for purchase about €479,999,000 of the 4 1/8% notes, after lifting the tender offer cap, using an expected scaling factor of about 0.951333, according to a company press release.

Settlement will occur on July 21.

The company said it does not intend to accept for purchase any of the 2018 notes tendered in the offer.

Pricing was scheduled to be set at 8 a.m. ET on July 20 using a benchmark rate and a purchase spread as follows:

• For the 4 1/8% notes, the purchase price will be set using 2017 notes interpolated mid-swap rate minus 5 basis points; and

• For the 2 7/8% notes, pricing will be based on 2018 notes interpolated mid-swap rate plus 15 bps.

The offers are part of the company’s balance sheet management and are aimed at proactively managing the company’s upcoming debt maturities, rebalancing the profile of financial charges and improving cash management, according to a previous press release.

Barclays (+44 20 3134 8515 or eu.lm@barclays.com), Citigroup Global Markets Ltd. (+44 0 20 7986 8969 or liabilitymanagement.europe@citi.com) and Credit Suisse Securities (Europe) Ltd. (+44 20 7892 1310 or liability.management@credit-suisse.com) are the dealer managers.

The tender agent is Citibank NA (+44 0 20 7508 3867 or exchange.gats@citi.com).

Terna Rete is an Rome-based utility company.

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