Koninklijke Philips publishes final results of euro tender offer

Chicago, May 6 – Koninklijke Philips NV announced the results of its tender offer for three euro notes, according to a press release.

Philips was offering to buy any and all of the €500 million outstanding 0.5% notes due Sept. 6, 2023 (ISIN: XS1671760384) with a par call date of June 6, 2023 at a price that was based on Bunds plus 15 basis points and the €500 million outstanding 0.75% notes due May 2, 2024 (ISIN: XS1815116568) with a par call date of Feb. 2, 2024 at a price that was based on Bunds plus 10 bps.

As of the tender deadline at 11 a.m. ET on May 5, the company received tenders for €196,976,000 of the 2023 notes and €224,535,000 of the 2024 notes.

Philips was also offering to buy a capped amount of the €500 million outstanding 1.375% notes due March 30, 2025 (ISIN: XS2149368529) that was priced using the 2025 interpolated mid-swap rate with no spread.

The maximum acceptance amount was calculated at €230,193,677.02 based on €250 million minus the amount of tenders received from the company’s simultaneous tender offer for three of its dollar-denominated notes.

Noteholders tendered €154,471,000 from this series.

Philips will accept all of the tendered notes from each of the three series.

The Friday pricing of the tender offers resulted in a tender price of 100.55 for the 2023 notes, 100.802 for the 2024 notes and 100.417 for the 2025 notes.

The expected settlement date is May 10.

After settlement, there will be €303,024,000 of the 2023 notes, €275,465,000 of the 2024 notes and €345,529,000 of the 2025 notes outstanding.

Following the settlement date, the company intends to redeem all remaining outstanding 2023 euro notes and 2024 euro notes at the relevant make-whole redemption amount.

The tender offer was conditioned on the successful issuance of the company’s new euro notes, a condition which was satisfied.

BofA Securities Europe SA (+33 1 877 01057, DG.LM-EMEA@bofa.com) and Mizuho Securities Europe GmbH (+44 20 7090 6134, liabilitymanagement@uk.mizuho-sc.com) are the dealer managers.

Kroll Issuer Services Ltd. (+44 20 7704 0880, philips@is.kroll.com, deals.is.kroll.com/philips) is the tender and information agent.

Royal Philips is a health technology company based in Amsterdam.

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