Anglo American gets no more tenders for dollar notes since early date

By Susanna Moon

Chicago, March 17 – Anglo American Capital plc said no additional notes had been tendered in the offer to purchase the company’s dollar-denominated debt since 5 p.m. ET on March 2, the early tender date.

As announced Feb. 18, the company was proposing to pay up to $1.3 billion to buy back multiple series of its notes.

The offers were divided into two parts, one for euro- and sterling-denominated securities in which the amount on offer was the equivalent of $1 billion and one for dollar-denominated securities in which the company will pay up to $300 million.

The euro and sterling offer ended at 11 a.m. ET on Feb. 25 with settlement on March 1.

The offer for the dollar-denominated debt covers Anglo American’s $600 million of 2.625% senior securities due April 3, 2017 and $750 million of 2.625% senior securities due Sept. 27, 2017. Both issues are guaranteed by Anglo American plc.

Anglo accepted for purchase $147,761,000 of the April notes and $114.86 million of the September notes tendered by the early deadline, according to a company notice.

The tender offer for the dollar notes ended at 11:59 p.m. ET on March 16.

The total purchase price, as noted before, will be $973.50 per $1,000 principal amount for the April notes and $939.00 per $1,000 for the September notes.

Both purchase prices include an early tender premium of $30.00 per $1,000 that will only be paid to holders who tender by the early tender deadline.

Those who tendered after the early deadline would have received per $1,000 principal amount $943.50 for the April notes and $909.00 per $1,000 for the September notes, or the total amount less the early premium.

Anglo American will also pay accrued interest up to but excluding the settlement date of March 21.

BNP Paribas (888 210-4358, 212 841-3059, +44 20 7595 8668 or liability.management@bnpparibas.com) is the global coordinator and joint dealer manager. Commerzbank AG (800 233-9164, +49 69 136 59920 or liability.management@commerzbank.com) and Credit Agricole Securities (USA) Inc. (212 261-7802, 866 807-6030 or liability.management@ca-cib.com) are also joint dealer managers.

D.F. King & Co., Inc. (212 269-5550, 800 330-5897 or anglo@king-worldwide.com) is the information and tender agent.

Euro, sterling offers

The euro and sterling offer covered five series of notes, Anglo American’s €750 million of 4.375% notes due Dec. 2, 2016 at a purchase price of 100.65%, its €900 million of 1.75% notes due Nov. 20, 2017 at a purchase price of 96.65%, its €750 million of 1.75% notes due April 3, 2018 at a purchase price of 91.45%, its £400 million of 6.875% notes due May 1, 2018 at a purchase price of 96.15% and its €750 million of 2.5% notes due Sept. 18, 2018 at a purchase price of 90%.

The euro/dollar exchange rate at the expiration time was 1.1036, and the sterling/dollar exchange rate was 1.3948.

The company accepted for purchase €168,597,000 of the 4.375% notes using a proration factor of 86.58%; €305,975,000 of its 1.75% notes due Nov. 20, 2017 using a proration factor of 70.26%; €212,195,000 of the 1.75% notes due April 3, 2018; £133,257,000 of the 6.875% notes due May 1, 2018; and €268,365,000 of the 2.5% notes due Sept. 18, 2018.

Anglo American also paid accrued interest.

The cap for the euro and sterling offer was set at the foreign exchange equivalent of $1 billion, including derivative costs, but excluding the accrued interest.

The purchase price for the 4.375% notes was capped at the equivalent of $250 million.

Apart from the cap, Anglo American determined which notes it bought back at its discretion.

BNP Paribas (+44 20 7595 8668 or liability.management@bnpparibas.com) is the global coordinator and joint dealer manager. Commerzbank (+49 69 136 59920 or liability.management@commerzbank.com) and Credit Agricole CIB (+44 20 7214 5733 or liability.management@ca-cib.com) are also joint dealer managers.

Lucid Issuer Services Ltd. (+44 20 7704 0880 or angloamerican@lucid-is.com) is the tender agent.

The euro and sterling offer was made under Regulation S.

Anglo American previously said the offers are part of its “ongoing proactive capital management and are aimed at efficiently using its strong liquidity position to reduce gross debt and smooth the company’s debt maturity profile while improving cash flows by reducing interest expense.”

Anglo American is a subsidiary of London-based mining company Anglo American plc.

© 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.