Total tenders for two series of undated deeply subordinated notes

By Sarah Lizee

Olympia, Wash., March 27 – Total SA launched a tender offer to partially repurchase its €2.5 billion undated deeply subordinated fixed-rate resettable notes with a first call date on Feb. 26, 2021 and/or its €1.75 billion undated deeply subordinated fixed-rate resettable notes with a first call date on May 18, 2022.

The company also intends to issue new euro-denominated five-year non-call deeply subordinated fixed-rate resettable notes, according to a company announcement.

The tender offer is subject to a maximum acceptance amount, which is expected to be equal to the principal amount of the new notes, and the 2021 notes, which are within the first acceptance priority level, will be accepted for purchase before any 2022 notes, which are within the second acceptance priority level.

The tender price of the notes will be based on a fixed tender spread of 55 basis points for the 2021 notes and 95 bps for the 2022 notes, in each case over the relevant interpolated mid-swap rate.

The company said the purpose of the tender offer and the planned issuance of new notes is, among other things, to proactively manage the company's hybrid portfolio while intending to maintain the total size of the stock of outstanding hybrid notes at the current level.

Total said the results of the tender offer will be announced on April 3.

The issuer is a Courbevoie, France-based oil and gas company.

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