By Angela McDaniels
Tacoma, Wash., June 17 – Voya Financial, Inc. determined the prices it will pay in its tender offer for five series of notes and debentures issued by Voya or subsidiary Voya Holdings, Inc.
Pricing was set at 11 a.m. ET on June 17 using a reference security plus a fixed spread. The total consideration for each series of notes is noted in the table below.
Each total consideration includes an early tender premium of $30 per $1,000 principal amount of notes tendered by 5 p.m. ET on June 17, the early participation date.
Holders will also receive accrued interest up to but excluding the applicable settlement date.
As previously reported, the aggregate purchase price for the notes is subject to an $800 million cap, excluding accrued interest.
The following notes, listed in order of acceptance priority level, are eligible for the offer:
• Voya Holdings’ $103 million 6.97% debentures due Aug. 15, 2036;
• Voya Holdings’ $204 million 7.625% debentures due Aug. 15, 2026;
• Voya Holdings’ $163 million 7.25% debentures due Aug. 15, 2023;
• Voya’s $850 million 5.5% senior notes due July 15, 2022; and
• Voya’s $1 billion 2.9% senior notes due Feb. 15, 2018.
The first three notes are guaranteed by ING Groep NV. The last two series are guaranteed by Voya Holdings.
The tender offer will end at 11:59 p.m. ET on July 1.
The company expects to accept for purchase on the early settlement date, June 20, all notes tendered by the early participation date, subject to the acceptance priority levels, the tender offer cap and proration, if any.
The final settlement date is expected to occur on July 6.
Voya reserves the right to increase the tender cap, according to a company announcement.
The offers’ financing condition was satisfied June 13 when Voya completed the sale of $800 million of 10- and 30-year notes.
The dealer managers are Barclays (800 438-3242 or 212 528-7581), Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) and Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955). D. F. King & Co., Inc. (212 269-5550, 866 207-2324 or voya@dfking.com) is the information agent and tender agent.
Voya is a financial, retirement, investment and insurance company based in New York.
Voya tender offer
| Title of security | Reference security | Reference yield | Fixed spread | Total consideration
|
| 6.97% debentures | 2.5% Treasury due Feb. 15, 2046 | 2.435% | 175 bps | $1,376.57
|
| 7.625% debentures | 1.625% Treasury due May 15, 2026 | 1.618% | 160 bps | $1,379.05
|
| 7.250%dDebentures | 1.625% Treasury due May 15, 2026 | 1.618% | 130 bps | $1,277.78
|
| 5.5% notes | 1.375% Treasury due May 31, 2021 | 1.124% | 155 bps | $1,157.34
|
| 2.9% notes | 1% Treasury due Feb. 15, 2018 | 0.698% | 35bps | $1,030.26
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