Deutsche Telekom offers to buy up to €2.25 billion notes from 12 series

By Marisa Wong

Los Angeles, Jan. 20 – Deutsche Telekom AG and Deutsche Telekom International Finance BV announced a cash tender offer for 12 series of notes, up to a maximum acceptance amount of €2.25 billion principal amount, according to a notice.

The offer covers the following series issued by Deutsche Telekom:

• €500 million 0.875% notes due March 25, 2026 (ISIN: DE000A2TSDD4), with the purchase price to be based on the March 2026 notes interpolated mid-swap rate and a fixed spread of negative 25 basis points; and

• €1.25 billion 0.5% notes due July 5, 2027 (ISIN: XS2024715794), with the purchase price to be based on the July 2027 notes interpolated mid-swap rate and a fixed spread of negative 10 bps.

The offer covers the following series issued by Deutsche Telekom International Finance:

• €1.75 billion 0.625% notes due April 3, 2023 (ISIN: XS1382792197), to be purchased at par;

• €1.25 billion 0.875% notes due Jan. 30, 2024 (ISIN: XS1557096267), to be purchased at 98.15;

• €650 million 2.75% notes due Oct. 24, 2024 (ISIN: XS0847580353), with the purchase price to be based on the October 2024 notes interpolated mid-swap rate and a fixed spread of negative 50 bps;

• €750 million 0.625% notes due Dec. 13, 2024 (ISIN: XS1732232340), with the purchase price to be based on the December 2024 notes interpolated mid-swap rate and a fixed spread of negative 45 bps;

• €500 million 4.875% notes due April 22, 2025 (ISIN: XS0503603267), with the purchase price to be based on the April 2025 notes interpolated mid-swap rate and a fixed spread of negative 45 bps;

• €1 billion 1.375% notes due Dec. 1, 2025 (ISIN: XS1828032786), with the purchase price to be based on the December 2025 notes interpolated mid-swap rate and a fixed spread of negative 30 bps;

• €750 million 1.125% notes due May 22, 2026 (ISIN: XS1617898363), with the purchase price to be based on the May 2026 notes interpolated mid-swap rate and a fixed spread of negative 15 bps;

• €1.25 billion 1.375% notes due Jan. 30, 2027 (ISIN: XS1557095616), with the purchase price to be based on the January 2027 notes interpolated mid-swap rate and a fixed spread of negative 5 bps;

• £300 million 1.25% notes due Oct. 6, 2023 (ISIN: XS1501155748), to be purchased at 98.25; and

• £300 million 2.5% notes due Oct. 10, 2025 (ISIN: XS1892151348), with the purchase price to be based on the 2% U.K. Treasury Gilt due Sept. 7, 2025 and a fixed spread of 50 bps.

The issuers said they reserve the right to purchase more than the maximum acceptance amount and will determine the allocation of funds between the notes of each series and may accept significantly more or less (or none) of any series compared to the other series.

Tenders may be subject to proration.

The companies will also pay accrued interest for notes accepted for purchase.

Tender instructions will be irrevocable.

The offer expires at 11 a.m. ET on Jan. 27.

Indicative results will be announced around 4 a.m. ET on Jan. 30. Pricing will be determined after that, at 6 a.m. ET on Jan. 30. Final results will be announced on the same day, after the pricing time.

Settlement is expected to occur on Feb. 1.

Banco Santander, SA (liabilitymanagement@santandercib.co.uk), Barclays Bank Ireland plc (+44 20 3134 8515; eu.lm@barclays.com) and NatWest Markets NV (+33 173 249 880; NWMLiabilityManagement@ natwestmarkets.com) are the dealer managers.

Kroll Issuer Services Ltd. (+44 20 7704 0880; attn.: Arlind Bytyqi / Owen Morris; deutschetelekom@is.kroll.com; https://deals.is.kroll.com/ deutschetelekom) is the tender agent.

The telecommunications company is based in Bonn, Germany.

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