UBS tenders for dollar, euro and lira bonds in CHF 5 billion offer

By Jennifer Chiou

New York, Feb. 5 - UBS AG announced the launch of its up to CHF 5 billion cash tender offers for several series of notes denominated in dollars, euros and Italian lira.

The company said that the offers are part of its effort to manage the composition of its liabilities.

The tender offer period for the euro- and lira-denominated securities will end on Feb. 19, and the offer ends on March 5 for the dollar notes.

Euro, lira offers

In the tender offers for euro-denominated and lira-denominated securities, the following are affected:

• €1.25 billion of floating-rate notes due 2013 with a purchase price of €1,002.10 per €1,000 principal amount;

• €750 million of floating-rate notes due 2014 with a purchase price of €1,006.70 per €1,000 principal amount;

• €1.5 billion of 5.625% notes due 2014 with a purchase spread of 11 basis points over the applicable interpolated mid-swap rate;

• €1.75 billion of 3.5% notes due 2015 with a purchase spread of 20 bps;

• €1.5 billion of 3.125% notes due 2016 with a purchase spread of 20 bps;

• €750 million of 4.75% notes due 2017 with a purchase spread of 20 bps; and

• 1,225,555,000,000 lira of zero-coupon notes due 2027 with a minimum purchase price of 59. These notes were originally issued by Union Bank of Switzerland Finance NV.

There is a €2.25 billion tender cap for the above-listed notes. UBS will also pay accrued interest.

Pricing is anticipated for Feb. 20, with settlement on Feb. 22.

Dollar offers

In the dollar-denominated notes offers, UBS is tendering for up to $1 billion of the following pool 1 notes:

• $2,381,597,000 of 5.75% notes due April 25, 2018 with a fixed spread of 92 bps over the 0.875% Treasury due January 31, 2018; and

• $2.5 billion of 4.875% notes due Aug. 4, 2020 with a fixed spread of 47 bps over the 1.625% Treasury due Nov. 15, 2022.

The Zurich bank is also tendering for up to $1.5 billion of the following pool 2 notes:

• $1.5 billion of 2.25% notes due Aug. 12, 2013 with a fixed spread of 15 bps over the 0.375% Treasury due July 15, 2013;

• $1 billion of 2.25% notes due Jan. 28, 2014 with a fixed spread of 15 bps over the 1% Treasury due Jan. 15, 2014;

• $750 million of floating-rate notes due Jan. 28, 2014 with a purchase price of $1,010 per $1,000 principal amount;

• $1.5 billion of 3.875% notes due Jan. 15, 2015 with a fixed spread of 15 bps over the 0.25% Treasury due Jan. 31, 2015; and

• $3 billion of 5.875% notes due Dec. 20, 2017 with a fixed spread of 65 bps over the 0.875% Treasury due Jan. 31, 2018.

The to-be-set payouts will include a $30 early participation amount per $1,000 principal amount for those who tender prior to the early deadline on Feb. 19. UBS will also pay accrued interest.

Pricing will be set on Feb. 19.

Early settlement is earmarked for Feb. 22, and final settlement is slated for March 8.

The dealer manager is UBS Ltd. (44 207 567 0525 or OL-liability-management@ubs.com).

The tender agent is Lucid Issuer Services Ltd. (44 20 7704 0880 or ubs@lucid-is.com, attn: Yves Theis/Paul Kamminga).

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