| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Tenders > Headlines for 2018 > News item |
Swedens SKF tenders for 300 million of 2.375% notes, 1.875% notes
By Susanna Moon
Chicago, Sept. 4 SKF AB said it is tendering for up to 300 million of its 449,999,000 of outstanding 750 million 2.375% notes due 2020 and its 265,853,000 of outstanding 500 million 1.875% notes due 2019.
Pricing for each 1,000 principal amount will be set using a purchase yield as follows assuming a settlement date of Sept. 17, with the notes listed in order of priority acceptance levels:
Negative 0.15% for the 2.375% notes for a purchase price of 1,053.53; and
Negative 0.3% for the 1.875% notes for a purchase price of 1,021.46.
Holders also will receive accrued interest.
The offers will remain open until 11 a.m. ET on Sept. 12.
The purpose of the offers along with a planned issue of new euro-denominated fixed rate notes is to extend the companys debt maturity profile in an efficient manner, according to a company announcement.
The tender is contingent on issue of the new notes.
The offers are also being made as part of the company's liability management and are aimed at optimizing its cost of debt and, furthermore, providing liquidity to those holders whose notes are accepted in the offers.
The dealer managers are Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com) and Commerzbank AG (+49 69 136 59920 or liability.management@commerzbank.com). The tender agent is Citibank, NA, London Branch (+44 20 7508 3867 or exchange.gats@citi.com).
As previously announced, SKF was tendering for up to 300 million of three series of notes in an offer that ended at 11 a.m. ET on May 16.
Investors had tendered 445,189,000 of the 750 million 2.375% notes due 2020, which had priority over the other two note series, as well as 29,708,000 of its 233.61 million 3.875% notes due 2018 and 69,368,000 of its 265,853,000 1.875% notes due 2019.
SKF decided to accept 300,001,000 of the 2.375% notes due 2020 using a scaling factor of 69.7467%.
After settlement on May 22, there was 449,999,000 of the 2.375% notes left outstanding.
The purchase price will be 1,079.09 for each 1,000 principal amount for an aggregate purchase amount of 323,728,079.09.
SKF makes ball and roller bearings and sealing systems. The company is based in Gothenburg, Sweden.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.