3CIF to pay €800 million in Dutch auction tender for four series

By Susanna Moon

Chicago, Oct. 3 – Caisse Centrale du Credit Immobilier de France, or 3CIF, plans to spend up to €800 million including accrued interest to purchase four series of notes by modified Dutch auction.

Pricing will be set using the purchase yield of a reference benchmark and a clearing spread based on a minimum spread and maximum spread as follows:

• €1 billion of 0.5% notes due July 2018 using the 0% BTF reference benchmark due July 2018 with a minimum offer spread of 0 basis points and a maximum offer spread of 10 bps;

• €1.25 billion of 0.25% notes due November 2018 using the 1% FRTR reference benchmark due November 2018 with an offer spread ranging from 0 bps to 10 bps;

• €1.5 billion of 1.125% notes due April 2019 using the 4.25% FRTR reference benchmark due April 2019 with an offer spread ranging from 5 bps to 15 bps; and

• €1.2 billion of 0.375% notes due July 2020 using the 2020 interpolated mid yield rate with an offer spread ranging from 10 bps to 20 bps.

Holders also will receive accrued interest.

The tender offer will end at 10 a.m. ET on Oct. 10.

For each series, the purchase price will be set at 6 a.m. ET on Oct. 11 using the purchase yield of a purchase spread, or the clearing spread, and the mid yield rate, according to a company announcement.

The purchase price is intended to reflect a yield to maturity of note series on the settlement date equal to the purchase yield and specifically the value of all remaining payments of principal and interest on the series through maturity, discounted to the settlement date at a discount rate equal to the purchase yield minus accrued interest up to but excluding the settlement date.

3CIF is holding the offers to reduce the company’s interest expense, the release noted.

The company said it will fund the offers with available cash.

Tender instructions may be submitted on a non-competitive or a competitive basis. Non-competitive instructions are ones that either do not specify an offer spread for notes or those that specify an offer spread at or above the maximum purchase spread. Competitive instructions are those that specify an offer spread of less than the maximum offer spread. Offer spreads may only be specified in increments of 1 bp below the maximum offer spread. Tender instructions will only be submitted in increments of €100,000 and not be less than the minimum denomination of €100,000.

Settlement is expected to occur on Oct. 13.

The dealer managers are Deutsche Bank AG, London Branch (+44 20 7545 8011), Societe Generale (+33 1 42 13 32 40 or liability.management@sgcib.com) and HSBC Bank plc (+44 20 7992 6237 or LM_EMEA@hsbc.com). Luxembourg tender and information agent is BNP Paribas Securities Services, Luxembourg Branch (+352 26 96 62 301 or lu_bp2s_offer@bnpparibas.com). The French tender and information agent is BNP Paribas Securities Services (+33 1 55 77 61 60, +33 1 57 43 10 77 or paris.bp2s.offers@bnpparibas.com, paris.bp2s.information.agent@bnpparibas.com).

3CIF is a Paris-based bank.

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