Hellenic Telecommunications tenders for some 4 5/8%, 7 7/8% bonds

By Susanna Moon

Chicago, Nov. 23 – Hellenic Telecommunications Organization SA said it began a tender offer for a maximum amount of its outstanding €900 million 4 5/8% bonds due May 2016 and its outstanding €700 million 7 7/8% bonds due February 2018.

The 2016 bonds will be repurchased at 101.5% of par, and the 2018 bonds will be repurchased at a price to be set using a spread of 350 basis points over mid-swaps, according to two separate company notices.

The company is offering to purchase up to €250 million of the €629.45 million outstanding 4 5/8% bonds and up to €50 million of the 7 7/8% bonds.

Pricing for the 2018 bonds will be set at 9 a.m. ET on Nov. 30.

Holders also will receive accrued interest.

The amount of bonds to be repurchased will depend on pricing of a new four-year euro-denominated bond issue, the company said.

The company said it reserves the right to accept less than or more than set target amounts.

Hellenic is planning to issue at least €300 million of euro-denominated notes to institutional investors, and the tender offer is conditioned on pricing of the new issue.

For the 2016 bonds, holders who subscribe to the new bond issue will receive acceptance priority in the tender offer, the company noted.

Tender instructions must be received by 11 a.m. ET on Nov. 27. Tender instructions must be submitted for a minimum principal amount of €50,000 for the 2016 notes and in integrals of €50,000 after that and of €100,000 for the 2018 notes and in integrals of €1,000 after that.

Settlement has been set for Dec. 1.

The tender offer is being held to “manage OTE Group's debt maturity profile in an efficient manner,” the release noted.

Deutsche Bank AG, London Branch (+44 20 7545 8011 or liability.management@db.com), Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com) and HSBC Bank plc (+44 20 7992 6237 or liability.management@hsbcib.com) are dealer managers for the tender offer with Deutsche as structuring agent. Lucid Issuer Services Ltd. (+44 20 7704 0880 or ote@lucid-is.com) is tender agent.

Hellenic Telecommunications, also known as OTE SA, is an Athens, Greece-based provider of fixed and mobile communications in Greece, Romania and Albania.

© 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.