SKF tenders for up to €300 million of its 2.375% and 1.625% notes

By Sarah Lizee

Olympia, Wash., Oct. 29 – SKF AB launched cash tenders offer for up to €300 million of its €500 million of 2.375% notes due 2020 and €256,619,000 of 1.625% notes due 2022, according to a notice.

The offers will expire at noon ET on Nov. 5.

For the notes due 2020, the purchase price will be €1,025.58 per €1,000 of notes, determined on the basis of a yield to the maturity date of Oct. 29, 2020 and a settlement date of Nov. 15.

For the notes due 2022, the purchase price will be €1,051.24 per €1,000 of notes, determined on the basis of a yield to the first optional par call date of Sept. 2, 2022 and a settlement date of Nov. 15.

Should settlement be set for another date, the purchase prices will be recalculated.

The purchase yield is negative 0.2% for the 1.625% notes and negative 0.3% for the 2.375% notes.

Tendered notes may be subject to proration. The 1.625% notes have a higher priority than the 2.375% notes.

The tender offers are subject to a new financing condition. The company announced that it intends to offer new euro-denominated fixed-rate green notes.

Holders who wish to subscribe for new notes in addition to tendering their 2022 notes may receive priority in allocation of the new notes.

Tenders may not be withdrawn except for under limited circumstances.

Tender instructions must be submitted for no less than €100,000 and in integral multiples of €1,000 onwards.

The company said the purpose of the offers and the proposed issue is to extend the company's debt maturity profile in an efficient manner.

Banca IMI SpA (+39 02 7261 6502 or liability.management@bancaimi.com) and Deutsche Bank AG, London Branch (+44 20 754 16958) are the dealer managers. Lucid Issuer Services Ltd. (+44 20 7704 0880 or skf@lucid-is.com) is the tender agent.

SKF makes ball and roller bearings and sealing systems. The company is based in Gothenburg, Sweden.

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