Iceland accepts tenders for €60.49 million of 2.5% notes due 2020

By Sarah Lizee

Olympia, Wash., June 13 – Iceland announced the results of its any and all tender for its €352,422,000 of outstanding 2.5% notes due July 15, 2020 that ended at 1 p.m. ET on June 12.

By the expiration time, holders had tendered €60,486,000 of the notes. The republic decided to accept for purchase all of the tendered notes.

Pricing was set using a purchase yield of negative 0.4% for a purchase price of 103.112.

Subject to satisfaction or waiver of the financing condition, settlement will be on June 20.

Following settlement, €291,936,000 of the notes will remain outstanding.

As previously reported, the issuer announced plans to price new notes under its $5 billion euro medium-term note program with some of the proceeds to be used to fund the tender offer.

The tender is contingent on issuance of the new notes.

Iceland made the offer “to proactively manage upcoming debt repayments and to extend [its] average debt maturity profile,” according to an announcement.

Noteholders who subscribe for new notes in addition to tendering in the offer will receive priority in the allocation of the new issue, the company said.

The minimum denomination of the new notes is €100,000.

Pricing of the new notes is expected for June 13. Settlement for the tender offer and the new notes is expected for June 20.

Barclays Bank plc (+44 20 3134 8515 or eu.lm@barclays.com), J.P. Morgan Securities plc (+44 20 7134 2468 or emea_lm@jpmorgan.com), Morgan Stanley & Co. International plc (+44 20 7677 7799 or liabilitymanagementeurope@morganstanley.com) and Nomura International plc (+44 20 7103 6597 or liability.management@nomura.com) are the dealer managers. Citibank, NA, London Branch (+44 20 7508 3867 or citiexchanges@citi.com) is the tender agent.

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