Enel prices new capital securities to be issued in exchange offer

By Angela McDaniels

Tacoma, Wash., May 16 – Enel SpA set the terms of the new euro-denominated capital securities due May 24, 2080 that it will issue in the exchange offer for its €749,981,000 of 5% capital securities due 2075 and its €513,256,000 of 5.451% capital securities due 2074, according to a notice.

The new capital securities’ coupon will be 3.5%, the issue price will be 99.337, and the issue yield will be 3.625%.

The exchange price for the capital securities due 2075 is expected to be 103.369, assuming a settlement date of May 24. It is meant to reflect a yield to the first call date of negative 0.2%.

The exchange price for the capital securities due 2074 will be calculated by reference to the sum of the exchange spread, being 245 basis points, and the interpolated mid-swap rate.

Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be May 24.

The exchange offer will end at 11 a.m. ET on May 21, and pricing will be set on May 22.

In the exchange offer, the company will issue a maximum principal amount of new capital securities equal to €750 million minus the principal amount of capital securities issued in a standalone offering.

The company expects to issue €300 million of the new capital securities in the standalone offering.

If the exchange offer is oversubscribed, the capital securities accepted for exchange will be subject to proration, and the company will allocate acceptance between the two existing series of capital securities at its discretion.

The first call date for the capital securities due 2075 is Jan. 15, 2020. The first call date for the capital securities due 2074 is Jan. 10, 2024. The first call date for the new capital securities will be May 24, 2025.

The exchange offer is conditioned on the company and the lead managers signing a subscription agreement for the new capital securities.

The new capital securities will be issued in denominations of €100,000 and integral multiples of €1,000 after that.

The dealer managers are Banca IMI SpA (+39 02 7261 4704/4755, fax +39 02 72 61 22 20 or Liability.Management@bancaimi.com), Banco Bilbao Vizcaya Argentaria, SA (+44 20 7648 7516 or liabilitymanagement@bbva.com), Banco Santander, SA (+44 20 7756 6909/6646 or Tommaso.GrosPietro@santanderCIB.co.uk, King.Cheung@santanderCIB.co.uk), Barclays Bank plc (+44 20 3134 8515 or eu.lm@barlcays.com), BNP Paribas (+44 20 7595 8668 or liability.management@bnpparibas.com), Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com), Deutsche Bank AG, London Branch (+44 20 7545 8011), Goldman Sachs International +44 20 7774 4873 or liabilitymanagement.eu@gs.com), HSBC Bank plc (+44 20 7992 6237 or lm_emea@hsbc.com), J.P. Morgan Securities plc (+44 20 7134 2468 or emea_lm@jpmorgan.com), MUFG Securities (Europe) NV (+31 20 799 0250, +44 20 7577 4048 or DCM-LM@int.sc.mufg.jp), NatWest Markets plc (+44 20 7085 6124 or liabilitymanagement@natewestmarkets.com), and UniCredit Bank AG, Milan Branch (+49 89 378 13722 or corporate.lm@unicredit.de).

The exchange agent is Lucid Issuer Services Ltd. (+44 0 20 7704 0880 or enel@lucid-is.com).

Enel is a Rome-based electricity and gas manufacturer and distributor.

© 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.