France’s 3CIF pays €787 million in Dutch auction tender, sets pricing

By Susanna Moon

Chicago, Oct. 11 – Caisse Centrale du Credit Immobilier de France, or 3CIF, said it will pay €787,405,048.74 including accrued interest to purchase four series of notes by modified Dutch auction.

3CIF accepted for purchase all notes tendered under non-competitive instructions with no scaling, according to a company update on Wednesday.

The purchase price was 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.

The acceptance amounts are as follows with pricing based on the purchase yield of a reference benchmark and a clearing spread:

• €143.3 million of the €1 billion 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 for a mid-yield rate of negative 0.611%, clearing spread of 10 bps, purchase yield of negative 0.511% and purchase price of 100.754;

• €309 million of the €1.25 billion 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 for a mid-yield rate of negative 0.598%, clearing spread of 5 bps, purchase yield of negative 0.548% and purchase price of 100.897;

• €279.7 million of the €1.5 billion 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 for a mid-yield rate of negative 0.619%, 11 clearing spread of bps, purchase yield of negative 0.509% and purchase price of 102.506; and

• €41.4 million of the €1.2 billion 0.375% notes due July 2020 using the 2020 interpolated mid yield rate with an offer spread ranging from 10 bps to 20 bps for a mid-yield rate of negative 0.466%, clearing spread of 20 bps, purchase yield of negative 0.266% and purchase price of 101.802.

Specifically, the company has accepted none of the July 2018 notes nor 2020 notes tendered under competitive instructions and all of the November 2018 notes and 2020 notes tendered under competitive bids at or above the clearing spread with no scaling but no notes below the clearing spread.

Holders also will receive accrued interest.

The tender offer ended at 10 a.m. ET on Oct. 10.

After settlement on Oct. 13, the outstanding amount will be €856.7 million for the July 2018 notes, €941 million for the November 2018 notes, €1,220,300,000 for the 2019 notes and €1,158,600,000 for the 2020 notes.

The company said on Oct. 3 that it would spend up to €800 million in the modified Dutch auction tender.

The purchase price is intended to reflect a yield to maturity of a 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.

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

Tender instructions could have been 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.

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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