TIAA tenders for up to $750 million of 6.85% surplus notes due 2039

By Wendy Van Sickle

Columbus, Ohio, April 19 – Teachers Insurance and Annuity Association of America began a cash tender offer for up to $750 million of its $2 billion of 6.85% surplus notes due 2039, according to a press release.

Pricing will be set using the bid-side prices of the 2.875% U.S. Treasury note due Nov. 15, 2046 plus 120 basis points.

There will be an early tender premium of $50 for each $1,000 principal amount tendered by the early deadline of 5 p.m. ET on May 2.

The deadline to withdraw tendered notes is also 5 p.m. ET on May 2.

The tender offer expires at midnight ET at the end of May 16.

The issuer will also pay accrued interest to the applicable settlement date.

If the amount of notes tenders exceeds the tender cap, notes will be accepted for purchase on a prorated basis.

The offer is subject to a financing condition.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-8553) are the joint lead dealer managers.

Global Bondholder Services Corp. (212 430-3774, 866 470-3700 or contact@gbsc-usa.com) is the tender agent and information agent.

New York-based Teachers Insurance & Annuity Association of America is a provider of financial services in the academic, research, medical, cultural and government fields.

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