Gas Natural to buy €1 billion of notes in tender via Citi; pricing set

By Susanna Moon

Chicago, April 5 – Citigroup Global Markets Ltd. said it will accept tenders for €1 billion principal amount of five series of notes issued by Gas Natural Capital Markets, SA and guaranteed by Gas Natural SDG, SA in the offer that ended at 11 a.m. ET on April 4.

The issuer will accept all of the tendered notes for three series of notes and some of the other two series using a proration factor, according to a notice by Citigroup.

Citigroup began tendering for up to €1 billion of the notes on March 28, and the breakdown for the accepted amounts is as follows, with pricing set at 9 a.m. ET on April 5 using a settlement date of April 6:

• €187.3 million, or a proration factor of 64.5%, of tendered €700 million 4.125% guaranteed notes due January 2018 using a purchase yield of negative 0.25% for a purchase price of 103.545 or €51,772.66 per €50,000 par amount plus 0.78% accrued interest;

• €164.2 million, or a proration factor of 64.45%, of tendered €750 million 5% guaranteed notes due 2018 using a purchase yield of negative 0.25% for a purchase price of 104.513 or €104,513.30 per €100,000 plus 0.712% accrued interest;

• €163.75 million, or all, of tendered €850 million 4.5% guaranteed notes due January 2020 using a purchase yield of negative 0.1% for a purchase price of 112.955 or €56,477.72 per €50,000 plus 0.851% accrued interest;

• €365.6 million, or all, of tendered €800 million 6% guaranteed notes due 2020 using a purchase yield of negative 0.1% for a purchase price of 117.18 or €117,180.03 per €100,000 plus 1.134% accrued interest; and

• €119.15 million, or all, of tendered €750 million 5.125% guaranteed notes due November 2021 with pricing set at 122.609, or €61,304.71 per €50,000 par amount plus 2.176% accrued interest, using the 2021 interpolated mid-swap rate plus 5 basis points for a reference yield of 0.111% and a purchase yield of 0.161%.

Gas Natural Capital Markets, SA had planned to price euro-denominated fixed-rate notes under its €14 billion guaranteed euro medium-term note program. The tender offer was contingent on pricing of the new notes, which has been satisfied, according to a company update on Wednesday.

Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com), Banco Bilbao Vizcaya Argentaria, SA (+44 20 7648 7516, +44 20 7397 6125 or liabilitymanagement@bbva.com), BNP Paribas (+44 20 7595 8668 or liability.management@bnpparibas.com) and CaixaBank, SA (+34 91 700 56 08 /09 / 10) are the joint dealer managers.

The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or gn@lucid-is.com).

The natural gas utilities company is based in Barcelona, Spain.

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