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Woolworths offers to buy back up to $630 million of notes
By Angela McDaniels
Tacoma, Wash., May 16 - Woolworths Ltd. began a tender offer in the United States for a portion of five series of notes, according to a company news release.
The company will purchase up to $370 million principal amount of tender pool 1 notes and up to $260 million principal amount of tender pool 2 notes.
The tender pool 1 notes are the company's $500 million of 2.55% notes due 2015, $425 million of 5.55% notes due 2015 and $300 million of 3.15% notes due 2016.
The tender pool 2 notes are the company's $750 million of 4% notes due 2020 and $550 million of 4.55% notes due 2021.
Notes will be subject to proration if the amount of notes of that tender pool that are tendered exceeds the cap for that tender pool.
The tender offer will expire at 11:59 p.m. ET on June 14.
Holders must tender by 5 p.m. ET on May 31, the early tender date, in order to receive the full tender offer consideration, which will include an early tender payment of $30.00 per $1,000 principal amount.
The full tender offer consideration for each series of notes will be determined by reference to a fixed spread over the yield of a reference U.S. Treasury security at 2 p.m. ET on June 3.
The reference security is the 0.125% Treasury due April 30, 2015 for the 2.55% notes and the 5.55% notes, the 0.25% Treasury due May 15, 2016 for the 3.15% notes and the 1.75% Treasury due May 15, 2023 for the 4% notes and 4.55% notes.
The fixed spread is 30 basis points for the 2.55% notes, 40 bps for the 5.55% notes and 3.15% notes, 45 bps for the 4% notes and 55 bps for the 4.55% notes.
The tender offer is not conditioned on any minimum amount of notes being tendered.
The dealer managers are Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-2494). The information agent is D.F. King & Co., Inc. (800 488-8075 or, for banks and brokers, 212 269-5550).
Woolworths is a retailer based in Sydney, Australia.
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