Obrascon accepts €45.72 million of tendered notes from two series

By Marisa Wong

Morgantown, W.Va., Oct. 29 – Obrascon Huarte Lain, SA announced the final results and pricing details of its cash tender offer for up to €303 million of three series of notes. The tender offer ended at 11 a.m. ET on Oct. 21.

The company began the tender offer on Oct. 7 for its €300 million 7 5/8% senior notes due 2020, €400 million 4¾% senior notes due 2022 and €325 million 5½% senior notes due 2023.

The company accepted €37,583,000 of the 7 5/8% notes, €8,137,000 of the 5½% notes and none of the tendered €400 million 4¾% notes, according to a Thursday news release.

Pricing was set under a modified Dutch auction. The purchase price is 104.3 for the 7 5/8% notes and 93.94 for the 5½% notes.

The minimum purchase price for the 7 5/8% notes was to be 101% of par, as previously reported.

Obrascon said before it would accept notes in the following order:

• Any and all 7 5/8% notes tendered under non-competitive instructions;

• 7 5/8% notes tendered under competitive instructions up to the cap less the aggregate principal amount of 7 5/8% notes non-competitive tender instructions; and

• An aggregate principal amount of up to the cap less the aggregate principal amount of 7 5/8% notes non-competitive tender instructions.

Settlement will occur on Nov. 4, since settlement of a related capital increase is expected to take place on Friday. Originally, settlement was slated for Nov. 10, because the financing condition was previously expected to be satisfied on Nov. 4, as previously announced.

The offers will provide a degree of liquidity to those holders whose notes are accepted for purchase and also reduce overall leverage using part of the proceeds from the issue of new shares, according to a prior company notice.

The target acceptance amount was €303 million, but the company had said it could raise or lower that amount.

Following settlement of the offer, there will be €262,417,000 of the 7 5/8% notes and €316,863,000 of the 5½% notes outstanding.

BofA Merrill Lynch (+44 0 207 995 3715, +44 0 207 995 2324, Chris Dodman or christopher.dodman@baml.com Toll: +44 (0) 20 7996 5698) is the dealer manager. Lucid Issuer Services Ltd. (+44 0 20 7704 0880, David Shilson/ Victor Parzyjagla, ohl@lucid-is.com) is the tender agent.

Obrascon Huarte Lain is a Madrid, Spain-based construction and engineering company.

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