Vattenfall tenders for £250 million of 6.875% notes via Dutch auction

By Susanna Moon

Chicago, Nov. 8 – Vattenfall AB said it is tendering for up to £250 million of its £1 billion of 6.875% notes due 2039 until 11 a.m. ET on Nov. 15.

Pricing will be set at 9 a.m. ET on Nov. 16 under a modified Dutch auction using the purchase yield of the 4.25% U.K. Treasury due 2039 plus 105 basis points.

The notes purchase is intended “to optimize the company's cost of debt and balance sheet structure,” according to a company announcement. “The company has a strong liquidity position and therefore is offering to provide investors liquidity in the notes through the tender offer.”

Electronic instructions may be submitted on a non-competitive or a competitive basis. Non-competitive bids are ones that either do not specify a purchase spread or that specify a spread that is at or above the maximum purchase spread. Non-competitive instructions will be deemed to have specified the maximum purchase spread. Meanwhile, competitive bids specify a purchase spread that is less than the maximum purchase spread. Purchase spreads may only be specified in increments of 1 bp below the maximum purchase spread.

Electronic instructions must be submitted for at least £50,000 of notes in integrals of £1,000 after that.

Settlement is expected to occur on Nov. 21.

The dealer manager is Barclays Bank plc (+44 20 3134 8515 or eu.lm@barclays.com). The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or vattenfall@lucid-is.com).

Vattenfall is a Stockholm-based energy company.

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