Energias de Portugal gives early tender update in oversubscribed offer; pricing set

By Susanna Moon

Chicago, Dec. 2 – Energias de Portugal, SA said investors had tendered $469,462,000 of 6% notes due Feb. 2, 2018 and $289,981,000 of 4.9% notes due Oct. 1, 2019 issued by subsidiary EDP Finance BV.

The results are as of 5 p.m. ET on Dec. 1, the early tender date.

The company will accept for purchase all of the tendered 6% notes and $30,538,000 of the tendered 4.9% notes using a proration factor of 7.76%, according to two separate company updates.

As announced Nov. 17, EDP was tendering for up to $500 million of the two note series, each with an outstanding principal amount of $1 billion. The notes are listed in order of acceptance priority.

Pricing for each $1,000 principal amount was set at 11 a.m. ET on Dec. 2 using a reference security plus a fixed spread as follows:

• $1,044.10 for the 6% notes, using the ¾% Treasury due Oct. 31, 2018 plus 100 basis points; and

• $1,056.90 for the 4.9% notes, based on the 1% Treasury due Nov. 15, 2019 plus 140 bps.

The company will pay an early tender premium of $30.00 per $1,000 principal for notes tendered by the early deadline.

The company will also pay accrued interest to but excluding the settlement date, which is expected to be Dec. 6 for early tendered notes.

The offer was set to continue until 11:59 p.m. ET on Dec. 15, but the offer has been oversubscribed as of the early deadline.

Tendered notes may no longer be withdrawn as of the early deadline.

The company previously said the tender offer is part of its effort to optimize its liability portfolio and to increase the average life of its debt.

Morgan Stanley & Co. LLC (800 624-1808, 212 761-1057, +44 20 7677 5040 or liabilitymanagementeurope@morganstanley.com) and Deutsche Bank Securities Inc. (866 627-0391, 212 250-2955, +44 20 7545 8011 or liability.management@db.com) are the dealer managers.

D.F. King Ltd. (212 269-5550, 800 431-9633, +44 20 7920 9700 or edp@dfkingltd.com) is the information and tender agent.

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

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