SRV Group announces results of tender offer for 8.875%, 6.875% notes

By Sarah Lizee

Olympia, Wash., May 16 – SRV Group plc announced the results of its tender offer for up to €70 million of its €45 million 8.875% notes issued on March 22, 2016 and €100 million 6.875% notes due on March 23, 2021 that expired at 9 a.m. ET on May 15, according to a press release.

As of the deadline, the total amount of the notes validly tendered for purchase at or below the final purchase prices was €30.3 million for the 8.875% notes and €39.68 million for the 6.875% notes.

The final purchase price is 102.5 for the 8.875% notes and 100.5 for the 6.875% notes. Holders will also receive accrued interest.

The amount accepted for purchase for the 8.875% notes is €20.5 million, and the amount accepted for purchase for the 6.875% notes will be subject to the amount of new euro-denominated capital notes to be issued.

Accordingly, valid tenders are expected to be subject to a proration factor of 56% for the 8.875% notes, rounded down to the nearest €100,000. However, each valid tender instruction for €100,000 of the 8.875% notes will be accepted for purchase in whole.

The possible proration factor for the 6.875% notes will be determined after the new issue has been completed and valid tenders will be rounded down to the nearest €1,000.

The tender offer is subject to the pricing and issuance of the new notes. The company said that as of Thursday, the new notes had not been issued.

Holders who wish to subscribe for new notes in addition to tendering their notes for cash may receive priority in the allocation of the new notes.

OP Corporate Bank plc (liabilitymanagement@op.fi, +358 10 252 1668) is the dealer manager and tender agent.

The company said previously that it may issue a new €45 million to €60 million hybrid bond soon.

The proceeds of the new bond will be used to partially fund the tender offer.

While the company has held discussions with some investors that have indicated interest in the new issuance, completion of the issue is subject to further arrangements and is not assured, the company said.

SRV is an Espoo, Finland-based construction company.

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