Enel offers issue due 2078 in exchange for €500 million of 5% bonds

By Susanna Moon

Chicago, May 14 – Enel SpA is offering to exchange up to €500 million of its €1 billion of 5% capital securities due 2075 for new bonds and cash.

In exchange, Enel will issue the euro amount of euro-denominated capital securities due Nov. 24, 2078 on a 1 to 1 basis for each €1,000 principal amount, according to a company announcement.

The exchange offer will end at 6 a.m. ET on May 21.

The existing bonds have a first call date of Jan. 15, 2020, and the new issues will have a first call date of Nov. 24, 2023.

Pricing for the exchange notes will be set using 45 basis points over the existing securities interpolated mid-swap rate.

The cash amount will be determined at pricing.

Holders also will receive accrued interest up to but excluding the settlement date.

The issuer also plans to price on May 15 two series of new capital securities, which are expected to be benchmark size and have a first call date of Nov. 24, 2023 and Nov. 24, 2026, respectively, and will form a single series of securities with the exchange securities.

The exchange bonds are expected to have the same yield, issue price and coupon of the standalone new securities, the release noted.

The offer is being made to proactively manage the issuer’s hybrid portfolio and debt structure, according to a company announcement.

Settlement is expected to occur on May 24.

The dealer managers are Banca IMI SpA (+39 02 7261 4704/ 4755, fax +39 02 72 61 22 20 or Liability.Management@bancaimi.com), BNP Paribas (+44 20 7595 8668 or liability.management@bnpparibas.com), CaixaBank SA (+34 91 700 56 09 / 10, mlafont@caixabank.com, araguilar@caixabank.com, asanzpastor@caixabank.com), Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com), Commerzbank Aktiengesellschaft (+49 69 136 59920 or Liability.Management@Commerzbank.com), Credit Agricole Corporate and Investment Bank (+44 20 7214 5903 or liability.management@ca-cib.com), Deutsche Bank AG, London Branch (+44 20 7545 8011), Goldman Sachs International (+44 20 7774 9862 or liabilitymanagement.eu@gs.com), ING Bank NV (+31 20 563 2132 or liability.management@ing.com), J.P. Morgan Securities plc (+44 20 7134 2468 or emea_lm@jpmorgan.com), Merrill Lynch International (+44 20 7996 5420 or DG.LM_EMEA@baml.com), MUFG Securities EMEA plc (+44 20 7577 4048/4218 or DCM-LM@int.sc.mufg.jp), NatWest Markets plc (+44 20 7085 6124 or liabilitymanagement@natewestmarkets.com), Societe Generale (+44 20 7676 7680 or liability.management@sgcib.com) and UniCredit Bank AG (+49 89 378 13722 or corporate.lm@unicredit.de).

The exchange agent is Lucid Issuer Services Ltd. (+44 0 20 7704 0880 or enel@lucid-is.com).

The issuer also began a tender offer for its €1.25 billion capital securities due 2074.

Enel is a Rome-based electricity and gas manufacturer and distributor.

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