Bertelsmann tenders for up to €300 million of notes from four series

By Marisa Wong

Los Angeles, Jan. 10 – Bertelsmann SE & Co. KGAA announced tender offers for four series of its euro-denominated notes.

Bertelsmann is offering to purchase for cash up to €300 million of notes from the following series:

• €750 million 2.625% notes due August 2022 (ISIN: XS0811690550), €597.3 million of which is outstanding, with pricing based on a purchase yield of negative 0.5%;

• €500 million 1.75% notes due October 2024 (ISIN: XS1121177767) with a first call date on July 14, 2024 and €439.9 million outstanding, with pricing based on the October 2024 notes interpolated mid-swap rate and a purchase spread of negative 5 basis points;

• €750 million 1.25% notes due September 2025 (ISIN: XS1888229249) with a first call date on June 30, 2025 and €534.7 million outstanding, with pricing based on the September 2025 notes interpolated mid-swap rate and a purchase spread of 0 bps; and

• €500 million 1.125% notes due April 2026 (ISIN: XS1400165350) with a first call date on Jan. 27, 2026, all of which is outstanding, with pricing based on the April 2206 notes interpolated mid-swap rate and a purchase spread of 5 bps.

The company will also pay accrued interest for notes accepted for purchase under the offers.

Tenders are due by 11 a.m. ET on Jan. 17.

Pricing will be determined at 8 a.m. ET on Jan. 18. Results will be announced after that.

Settlement is expected to be on Jan. 20.

The company said it may accept significantly more or less (or none) of any series compared to the other series. Tendered notes may also be subject to proration if the tender cap is exceeded.

The purpose of the offers is to reduce gross financial debt by using excess liquidity, the company noted.

Deutsche Bank AG (+44 20 7545 8011) and Societe Generale (+33 1 42 13 32 40, liability.management@sgcib.com) are the dealer managers.

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

The media conglomerate is based in Guetersloh, Germany.

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