Tele2 launches capped tender offer for 1 1/8% notes due 2024

By Marisa Wong

Los Angeles, May 9 – Tele2 AB is inviting holders of its €500 million 1 1/8% notes due May 15, 2024 (ISIN: XS1907150350) to tender their notes for purchase for cash, up to a maximum acceptance amount of €300 million, according to a notice.

The purchase price will be calculated using the May 2024 interpolated mid-swap rate and purchase spread of negative 20 basis points.

The company will also pay accrued interest to but excluding the settlement date.

The issuer said it may choose to increase or decrease the maximum acceptance amount at its discretion.

Tenders may be subject to proration.

The offer expires at 11 a.m. ET on May 16.

Pricing will be determined at or around 7 a.m. ET on May 17. Results will be announced soon after pricing.

Settlement is expected to occur on May 22.

The tender offer is subject to a new financing condition.

Tele2 announced on Tuesday that it intends to issue new euro-denominated fixed-rate notes guaranteed by Tele2 Sverige AB.

Holders who participate in the tender offer and wish to subscribe for the new notes may receive priority in allocation of the new notes.

The dealer managers for the tender offer are Deutsche Bank AG (+44 20 7545 8011) and Nordea Bank Abp (+45 6161 2996; nordealiabilitymanagement@nordea.com).

The tender agent is Kroll Issuer Services Ltd. (+44 20 7704 0880; tele2@is.kroll.com; attn.: Thomas Choquet; https://deals.is.kroll.com/tele2).

Tele2 is a Stockholm-based telecommunications services provider.

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