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Vattenfall accepts £250 million tenders of 6.875% notes at 161.902
By Wendy Van Sickle
Columbus, Ohio, Nov. 16 Vattenfall AB said it will accept 84.489% of notes tendered under the non-competitive electronic instructions prorated to meet the cap in its tender offer for up to £250 million of its £1 billion of 6.875% notes due 2039.
The company also announced pricing of the offer on Thursday.
The offer opened on Nov. 8 and ran through 11 a.m. ET on Nov. 15.
The tenders submitted via non-competitive electronic instructions were scaled to a proration factor to meet the tender cap, and no tenders submitted under the competitive electronic instructions will be accepted, the company said.
Pricing was 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 for a purchase yield of 2.936% plus 105 basis points resulting in a purchase price of 161.902. The company will also pay accrued interest of 4.14%.
Vattenfall previously said in an announcement that the notes purchase was intended to optimize the company's cost of debt and balance sheet structure, according to a company announcement.
Electronic instructions could be submitted on a non-competitive or a competitive basis. Non-competitive bids either did not specify a purchase spread or specified a spread that was at or above the maximum purchase spread. Non-competitive instructions were deemed to have specified the maximum purchase spread. Meanwhile, competitive bids specified a purchase spread that was less than the maximum purchase spread. Purchase spreads could only be specified in increments of 1 bp below the maximum purchase spread.
Electronic instructions had to 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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