Trafigura begins exchange offer for €150 million 6 3/8% notes due 2015

By Susanna Moon

Chicago, May 14 - Trafigura Funding SA said it began an exchange offer for up to €150 million of the €400 million 6 3/8% guaranteed notes due 2015 issued by Trafigura Beheer BV.

In exchange, the company is offering to issue another tranche of the €500 million 5¼% guaranteed notes due 2018 to be issued under its €2 billion euro medium-term note program.

The exchange offer is part of Trafigura's management of its balance sheet and capital structure, according to a company press release.

The exchange price will be 105.428% of par, and the repurchase yield is 1.061%.

The maximum delivery amount will be €150 million of 5¼% notes due Nov. 29, 2018 with new issue price of 107.858% and repurchase yield plus 290 basis points.

The exchange price was determined on the basis of a clean yield to maturity of the existing notes of 1.061%, but the specified price includes accrued interest from and including the immediately preceding interest payment date for the existing notes to but excluding the settlement date of June 3.

The new issue price was determined on the basis of a clean yield to maturity of the tap notes of 3.961%, but the specified price includes accrued interest from and including the immediately preceding interest payment date for the tap notes to but excluding the settlement date.

The exchange ratio, calculated by dividing the exchange price by the new issue price, is 0.977470.

Trafigura said it expects participation from an investor representing about 10.75% of the outstanding notes.

The exchange offer will end at 11 a.m. ET on May 28, with settlement set for June 3.

The dealer managers are Credit Suisse Securities (Europe) Ltd. (+44 207 888 5564, attn: liability management, e-mail at liability.management@credit-suisse.com) and Royal Bank of Scotland plc (+44 207 085 5991, attn: liability management, e-mail at liabilitymanagement@rbs.com).

The exchange agent is Deutsche Bank AG, London Branch (+44 0207 547 5001, attn.: debt and agency services, e-mail at xchange.offer@db.com).

Trafigura Beheer is a commodity trading company with offices 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.