Credit Agricole tenders for any, capped amount of six perpetual series

By Susanna Moon

Chicago, May 15 – Credit Agricole SA said it began tender offers for six series of its outstanding perpetual notes in two parts, one for any and all of two series of notes and another set of offers for a maximum amount of four other series.

In the waterfall offers, the company is offering to purchase up to €1.5 billion less the amount purchased in the any and all offers, according to a company announcement.

The tender offers will allow Credit Agricole “to optimize its capital base and debt management while offering liquidity to investors,” the release noted.

In the any-and-all offers, the purchase price will be as follows:

• For the $889,928,000 6.637% undated deeply subordinated notes, $950.00 for each $1,000 principal amount; and

• For the €371,232,000 of CMS floater undated deeply subordinated notes, €780.00 per €1,000 principal amount.

Holders will receive accrued interest up to but excluding the settlement date of May 24.

The any-and-all offers will end at 5 p.m. ET on May 19.

Tendered notes may be withdrawn by the end of the offer.

In the waterfall offers, pricing will be set at 9 a.m. ET on May 31 using a reference security plus a fixed yield as follows, with the notes listed in order of priority acceptance levels:

• For the £171.85 million of 7.589% undated deeply subordinated notes pricing will be set using the 4.75% U.K. Treasury due March 7, 2020 plus 300 basis points;

• For the £291.05 million of 8.125% undated deeply subordinated notes, the 3.75% U.K. Treasury due Sept. 7, 2019 plus 235 bps;

• For the $1 billion of $8.375% undated deeply subordinated notes, the 1.25% U.S. Treasury due April 30, 2019 plus 200 bps; and

• For the €450 million of 7.875% undated deeply subordinated notes, the interpolated mid-swap rate plus 100 bps.

The total purchase price includes an early tender premium of £30.00, $30.00 or €30.00 per £1,000, $1,000 or €1,000 principal amount, respectively, of notes tendered by 8 a.m. ET on May 30, the early participation date.

The waterfall offers will continue until 11:59 p.m. ET on June 13. Tenders may be withdrawn before the early deadline.

The company also will pay accrued interest to but excluding the settlement date of June 2 for early tendered notes and on June 16 for any remaining tenders.

The structuring bank and dealer manager is Credit Agricole Corporate and Investment Bank (attn.: liability management, +44 207 214 5733 or liability.management@ca-cib.com; Credit Agricole Securities (USA) Inc., attn.: debt capital markets / liability management, 212 261-7802 and 866 807-6030).

The tender agents and information agents are Global Bondholder Services Corp. (212 430-3774, 866 794-2200 or fax 212 430-3775/3779) and Caceis Corporate Trust SA (+33 1 57 78 34 10, charlotte.hugo@caceis.com / LD-F-CT-OST-MARCHE-PRIMAIR@caceis.com).

Credit Agricole is a Paris-based bank.

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