Credit Agricole sets pricing in waterfall offers for four note series

By Susanna Moon

Chicago, May 31 – Credit Agricole SA set pricing in the waterfall set of tender offers, which are capped at €679,211,262.

Investors had tendered €415,649,543 of four series of notes in the waterfall offers, and all of those notes will be accepted for purchase, according to a company update on Wednesday.

The waterfall offers will remain open until 11:59 p.m. ET on June 13.

The total purchase price for each £1,000, $1,000 or €1,000 principal amount is as follows, with pricing set at 9 a.m. ET on May 31 using a reference security plus a fixed spread:

• £1,112.65 for the 7.589% notes using the 4.75% U.K. Gilt due March 7, 2020 plus 300 basis points for a reference yield of 0.082%.

• £1,130.65 for the 8.125% notes, based on the 3.75% U.K. Gilt due Sept. 7, 2019 plus 235 bps for a reference yield of 0.079%.

• $1,114.75 for the 8.375% notes, based on the 1.25% U.S. Treasury due April 30, 2019 plus 200 bps for a reference yield of 1.287%.

• €1,165.56 for the 7.875% notes, based on the interpolated mid-swap rate plus 100 bps for a reference yield of negative 0.129%.

Each total purchase price will include an early tender premium of 3% of par for notes tendered by the early participation date.

The bank also will pay accrued interest up to but excluding the settlement date, which will be June 2 for early tendered notes and June 16 for any remaining tenders.

As of the early deadline of 8 a.m. ET on May 30, holders had tendered notes into the waterfall offer as follows, listed in descending order of priority:

• £63 million of the £171.85 million of 7.589% undated deeply subordinated notes;

• £97.5 million of the £291.05 million of 8.125% undated deeply subordinated notes;

• $166,582,000 of the $1 billion of 8.375% undated deeply subordinated notes; and

• €83.5 million of the €450 million of 7.875% undated deeply subordinated notes.

At its previous announcement on May 22, Credit Agricole said it was buying up to €679,211,262 principal amount of notes in the waterfall offer. This amount is equal to €1.5 billion less the amount of notes purchased in the any-and-all offer.

It also said that holders had tendered $782,927,000 principal amount of the bank’s $889,928,000 6.637% undated deeply subordinated notes and €120,456,000 principal amount of its €371,232,000 CMS floater undated deeply subordinated notes in the any-and-all offer, which ended at 5 p.m. ET on May 19.

The purchase price in the any-and-all offer is $950 for each $1,000 principal amount of 6.637% notes and €780 per €1,000 principal amount of CMS notes.

Holders also received accrued interest up to but excluding the settlement date, May 24.

When it announced the tenders on May 15, Credit Agricole said they would allow it “to optimize its capital base and debt management while offering liquidity to investors.”

The structuring bank and dealer manager is Credit Agricole CIB (+44 20 7214 5733, 212 261-7802, 866 807-6030 or liability.management@ca-cib.com).

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

Credit Agricole is a Paris-based bank.

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