Evonik launches tender offer for €500 million notes due 2077

By Marisa Wong

Los Angeles, Aug. 24 – Evonik Industries AG announced a tender offer for its €500 million subordinated resettable fixed-rate notes due 2077 (ISIN: DE000A2GSFF1) with an initial coupon of 2.125%, according to a notice.

Evonik is offering to purchase any and all of the notes for cash at a purchase price based on a fixed purchase yield of negative 15 basis points. Based on a settlement date of Sept. 6, the purchase price would be 102.091.

The company will also pay accrued interest.

The offer expires at 11 a.m. ET on Sept. 1. Results will be announced on Sept. 2.

The offer is subject to a financing condition. The company intends to issue new euro-denominated green subordinated resettable fixed-rate notes.

The company said the purpose of the tender offer and the new issuance is to proactively manage its layer of hybrid capital. The transaction also gives noteholders the opportunity to sell their current holdings ahead of the notes’ first par call date on Aug. 7, 2022 and to subscribe to the new green notes.

Holders who participate in the tender offer may be eligible to receive priority allocation of the new notes.

The existing notes have a clean-up call provision, which the company intends to exercise if the 80% threshold is met following the tender offer and proceeds from the new issuance are sufficient.

BNP Paribas (+33 1 55 77 78 94, liability.management@bnpparibas.com), BofA Securities Europe SA (+33 1 877 01057, DG.LM-EMEA@bofa.com) and Citigroup Global Markets Ltd. (+44 20 7986 8969, liabilitymanagement.europe@citi.com) are the dealer managers.

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

Evonik is a specialty chemicals company based in Essen, Germany.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.