Philips accepts early tenders for $285 million notes from four series

By Marisa Wong

Morgantown, W.Va., Oct. 4 – Koninklijke Philips NV announced the early results and pricing for its cash tender offer for up to $400 million principal amount of four series of its notes, according to a 6-K filed Tuesday with the Securities and Exchange Commission.

As of 5 p.m. ET on Oct. 3, the early tender deadline, holders had tendered the following, with the notes listed in order of priority acceptance level:

• $201.54 million of the $1 billion of 6 7/8% notes due 2038, with the total purchase price set at $1,354.59 per $1,000 principal amount;

• $29,193,000 of the $165,718,000 of 7.2% notes due 2026, with the total purchase price set at $1,345.18 per $1,000 principal amount;

• $18,506,000 of the $102,675,000 of 7 1/8% series A debentures due 2025, with the total purchase price set at $1,315.76 per $1,000 principal amount; and

• $35,765,000 of the $99.05 million of 7¾% series B debentures due 2025, with the total purchase price set at $1,362.98 per $1,000 principal amount.

The company said it accepted all of the early tendered notes for purchase, since the combined principal amount of notes tendered by the early deadline did not exceed the tender cap.

Pricing was set at 10 a.m. ET on Oct. 4 using a reference security plus a fixed spread. The reference security is the 2½% U.S. Treasury due May 15, 2046 for the 6 7/8% notes and the 1½% U.S. Treasury due Aug. 15, 2026 for the other three series. The spread is 196 basis points for the 6 7/8% notes, 140 bps for the 7.2% notes and 130 bps for the 7 1/8% notes and 7¾% notes.

The total purchase prices include an early tender premium of $50.00 for each $1,000 principal amount of notes tendered by the early tender deadline.

The tender offer will end at 11:59 p.m. ET on Oct. 18, with settlement on Oct. 5 for early tendered notes and Oct. 19 for all other tenders.

Tenders may no longer be withdrawn.

The company had said it reserves the right to increase or decrease the tender cap without extending the early tender deadline or the withdrawal deadline.

Deutsche Bank Securities Inc. (212 250-2955 or 866 627-0391), BofA Merrill Lynch (980 387-3907, 888 292-0070 or +44-20-7996-5420) and Mizuho Securities USA Inc. (212 205-7736 or 866 271-7403) are the dealer managers. Global Bondholder Services Corp. (212 430-3774, 866 794-2200, 212 430-3774 or gbsc-usa.com/Philips) is the depositary and information agent.

Philips is an electronics company based in Amsterdam.

© 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.