Bertelsmann offers to buy up to €400 million notes from three series

By Marisa Wong

Los Angeles, May 18 – Bertelsmann SE & Co. KGaA announced tender offers for three series of its euro-denominated notes subject to an aggregate acceptance amount of €400 million.

Bertelsmann is inviting holders of its €750 million 2.625% notes due 2022 (ISIN: XS0811690550), €500 million 1.75% notes due 2024 (ISIN: XS1121177767) and €750 million 1.25% notes due 2025 (ISIN: XS1888229249) to tender their notes for repurchase for cash.

The purchase price for the 2022 notes will be based on a purchase yield of negative 0.45%; the purchase prices for the 2024 notes and 2025 notes will be based on the relevant interpolated mid-swap rate and a fixed spread of 5 basis points.

The company will also pay accrued interest for any notes purchased under the tender offers.

The company said it reserves the right to accept significantly more or less (or none) of any series of notes as compared to the other series so that the final aggregate amount accepted does not exceed the cap.

Notes may be accepted for purchase on a pro rata basis.

The offer expires at 11 a.m. ET on May 26.

Pricing will be set at 8 a.m. ET on May 27 and will be announced along with results later that day.

Settlement is slated for May 31.

The issuer said the purpose of the offers is to reduce its gross financial debt by using excess liquidity.

Deutsche Bank AG (+44 20 7545 8011) and Banco Santander SA (+44 7418 709 688, +44 7742 403 679, Tommaso.GrosPietro@santanderCIB.co.uk, Adam.Crocker@santandercib.co.uk) are the dealer managers.

Lucid Issuer Services Ltd. (+44 20 7704 0880, attn.: Jacek Kusion / Harry Ringrose, bertelsmann@lucid-is.com) is the tender agent.

The media conglomerate is based in Guetersloh, Germany.

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