By Susanna Moon
Chicago, May 21 Enel SpA said it accepted for exchange 250,019,000 of its 1 billion of 5% capital securities due 2075 in the offer for new bonds and cash that ended at 11 a.m. ET on May 18.
In exchange, the company will issue 250,019,000 of 2.5% notes due Nov. 24, 2078 at a price of 99.375 for a yield of 2.625%.
The amount of the standalone issue will be 500 million.
The exchange price was set at 107.738 using a spread of 45 basis points over the interpolated mid-swap rate on May 15 for a reference rate of negative 0.168%, according to a company update on Monday.
The exchange rate will be 1 for 1.
The cash portion will be 83.63 per 1,000 principal amount.
As announced May 14, Enel was offering to exchange up to 500 million of the 5% bonds for new euro-denominated capital securities due Nov. 24, 2078 on a 1-to-1 basis for each 1,000 principal amount.
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.
Holders also will receive accrued interest up to but excluding the settlement date.
The issuer also planned to price two series of new capital securities, which were 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 were expected to have the same yield, issue price and coupon of the standalone new securities, the release noted.
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 (0)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 (+44 207 214 5903 or liability.management@ca-cib.com), Deutsche Bank AG, London Branch (+44 20 7545 8011), Goldman Sachs International (+44 0 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 (+44 207 134 2468 or emea_lm@jpmorgan.com), Merrill Lynch International (+44 207 996 5420 or DG.LM_EMEA@baml.com), MUFG Securities EMEA plc (+44 0 20 7577 4048/4218 or DCM-LM@int.sc.mufg.jp), NatWest Markets plc (+44 0 207 085 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).
Cash tender
The issuer also obtained tenders for 731,744,000 of the 6.5% capital securities due 2074 in the offer that ended at noon ET on May 18.
As previously announced, the company was offering to purchase the 6.5% securities due 2074 at 104.114 plus accrued interest, assuming a settlement date of May 24.
After settlement, there will be 518,256,000 of the notes left outstanding.
The offer required issue of the two series of new capital securities.
Banca IMI, BNP Paribas, CaixaBank, Citigroup Global Markets, Commerzbank, Credit Agricole, Deutsche Bank, Goldman Sachs International, ING Bank, J.P. Morgan Securities, Merrill Lynch International, MUFG Securities EMEA, NatWest Markets plc, Societe Generale and UniCredit Bank are dealer managers for the tender offer. Lucid Issuer Services is the tender agent.
Both offers are being made to proactively manage the issuers hybrid portfolio and debt structure, according to the company announcements.
Enel Finance is a financing arm of Rome-based electricity and gas manufacturer and distributor Enel SpA.
Exchange notes
| Issuer: | Enel SpA
|
| Issue: | Capital securities
|
| Amount: | 250,019,000
|
| Maturity: | Nov. 24, 2078
|
| Coupon: | 2.5%
|
| Price: | 99.375
|
| Yield: | 2.625%
|
| Pricing date: | May 15
|
| Settlement date: | May 24
|
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