Terna Rete buys back €480 million 4.125% notes in offer; pricing set

By Susanna Moon

Chicago, July 20 – Terna – Rete Elettrica Nazionale SpA said it accepted for purchase about €479,999,000 of its 4.125% notes due February 2017 and set pricing in the offer.

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 combined of its €1.25 billion 4.125% notes and its €750 million 2.875% notes due February 2018, with the notes listed in order of priority acceptance level.

The company accepted the 4.125% notes for purchase, after lifting the tender offer cap, using a scaling factor of about 0.951333, according to a company press release.

After settlement on July 21, there will be €770,001,000 of the 4.125% notes outstanding.

The company said it will not purchase any of the 2018 notes tendered in the offer.

The purchase price for the 4.125% notes was set at 106.453% of par, with a benchmark rate of 0.084% and a purchase yield of 0.034%.

Pricing was set at 8 a.m. ET on July 20 using the 2017 notes interpolated mid-swap rate minus 5 basis points.

The company also will pay accrued interest.

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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