EDP buys €500 million of four series in week-long tender; pricing set

By Susanna Moon

Chicago, Dec. 7 – Energias de Portugal, SA said it decided to accept tenders for €499,998,000 principal amount of four series of notes issued by subsidiary EDP Finance BV.

As announced Nov. 29, EDP was tendering for up to €400 million principal amount of five note series until noon ET on Dec. 6.

EDP will accept all of the tendered notes for the first three series of notes, the fourth using a scaling factor of 21.737% and none of the fifth issue, according to a company update on Friday.

The company expects to accept the following amount of notes with pricing set at 9 a.m. ET on Dec. 7 as follows, assuming a settlement date of Dec. 11:

• €98,809,000 of the €650 million 2.625% instruments due April 15, 2019 at a purchase price of 100.899 using a purchase yield of 0%;

• €66,628,000 of the €300 million 4.125% notes due June 29, 2020 at a price of 106.385 using a purchase yield of 0%;

• €287,778,000 of the €750 million 4.875% instruments due Sept. 14, 2020 at a price of 108.575 using a purchase yield of 0%;

• €46,783,000 of the €600 million 4.125% instruments due Jan. 20, 2021 at a price of 108.305 using the 2021 interpolated mid-swap rate plus 30 basis points for a purchase yield of negative 0.123%; and

• None of the €1 billion 2.625% instruments due Jan. 18, 2022.

After the offer, the outstanding amount will be €551,191,000 for the April 2019 notes, €233,372,000 for the June 2020 notes, €462,222,000 of the September 2020 notes, €553,217,000 of the 2021 notes and €1 billion of the 2022 notes.

Holders also will receive accrued interest.

EDP is “seeking to optimize the EDP Group's liability portfolio and increase the average life of the EDP Group's debt. To support these objectives, the offeror wishes to use available cash to reduce the amount of the EDP Group's outstanding debt as part of its ongoing liability management strategy,” according to a previous announcement.

The company said it will “determine the allocation of the final acceptance amount between the instruments of each series in its sole discretion and reserves the right to accept significantly more or significantly less (or none) of the instruments of any series.”

The dealer managers are Morgan Stanley & Co. International plc (+44 20 7677 7799 or liabilitymanagementeurope@morganstanley.com) and Societe Generale (+33 142 13 32 40 or liability.management@sgcib.com). The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or edp@lucid-is.com).

The financial services subsidiary of Energias de Portugal is based in Amsterdam.

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