Iren accepts tenders for €150 million of four note series; pricing set

By Susanna Moon

Chicago, Oct. 31 – Iren SpA said investors had tendered €210,228,000 of four series of notes in the offer that ended at 11 a.m. ET on Oct. 28.

Iren will accept for purchase €150 million principal amount of the notes, according to a company notice.

Investors had tendered the following amounts:

• €1 million of the €90.1 million of outstanding (€100 million issued) 3% notes due 2019 with a purchase price of 106.708% of par using a benchmark rate of negative 0.15% and a purchase yield of 0.05%;

• €15.38 million of the €200.5 million of outstanding (€260 million issued) 4.37% notes due 2020 with a purchase price of 116.672% of par using a benchmark rate of negative 0.067% and a purchase yield of 0.133%;

• €63,746,000 of the €250,019,000 of outstanding (€300 million issued) 3% notes due 2021 with a purchase price of 112.892% of par using a benchmark rate of negative 0.014% and a purchase yield of 0.236%; and

• €130,102,000 of the €500 million of 2.75% notes due 2022 with a purchase price of 113.604% of par using a benchmark rate of 0.097% and a purchase yield of 0.447%.

The company accepted for purchase all of the tendered 2019 notes, 2020 notes and 2021 notes, each with a priority acceptance level of 1, and €69,874,000 of the 2022 notes using a proration factor of 58.243%.

Pricing was set at 7 a.m. ET on Oct. 31 using the interpolated mid-swap rate plus a purchase spread of 20 basis points for the 3% notes due 2019, 20 bps for the 4.37% notes, 25 bps for the 3% notes due 2021 and 35 bps for the 2.75% notes, according to a company update.

After settlement on Nov. 2, the outstanding amount will be €89.1 million of the 3% notes, €185.12 million of the 4.37% notes, €186,273,000 of the 4.37% notes and €430,126,000 of the 3% notes.

The company will also pay accrued interest.

Iren priced a new issue of notes on Oct. 24 with settlement on Friday, and the new notes condition has now been met, the release noted.

“The offers are being made as part of the company's active management of its liabilities and the purpose of the offers is to manage the company's upcoming redemptions proactively,” according to a previous company announcement. “Furthermore, the offers provide a degree of liquidity to those noteholders whose notes are accepted in the offers.”

The structuring adviser is UniCredit Bank AG (+49 89 378 13722 or corporate.lm@unicredit.de).

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) and Mediobanca - Banca di Credito Finanziario SpA (+44 20 3036 9653 or MB_LM_CORP_IT@mediobanca.com), Morgan Stanley & Co. International plc (+44 20 7677 5040 or liabilitymanagementeurope@morganstanley.com) and UniCredit Bank AG (+49 89 378 13722 or corporate.lm@unicredit.de).

The tender agent is Lucid Issuer Services Ltd. (Thomas Choquet / Arlind Bytyqi, +44 0 20 7704 0880 or iren@lucid-is.com).

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

© 2015 Prospect News.
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