Kering prices tender offer for four series, sets cap at €405.2 million

By Marisa Wong

Morgantown, W.Va., April 5 – Kering announced pricing terms and the final acceptance amounts under its tender offer for four series of notes, which expired at 11 a.m. ET on April 4.

In an earlier announcement on Thursday, Kering said it set the indicative maximum tender amount at €405.2 million principal amount.

As announced March 26, the issuer was tendering for up to €350 million of four series of notes.

The acceptance amounts are as follows:

• €200 million of the €254,662,000 tendered from its €500 million of 3.125% notes due April 23, 2019 using a proration factor of 0.785550. The tender price is 103.567, based on a tender yield of negative 0.3%;

• None of the €136.7 million tendered from its €500 million of 2.5% notes due July 15, 2020. The tender price would have been set using a tender yield of negative 0.15%;

• €100 million of the €141.8 million tendered from its €500 million of 1.375% notes due Oct. 1, 2021 using a proration factor of 0.764500. The tender price is 104.741, set using a spread of negative 10 basis points over an interpolated mid-swap rate; and

• €105.2 million of the €219.8 million tendered from its €500 million of 0.875% notes due March 28, 2022 using a proration factor of 0.500000. The tender price is 102.854, set using a spread of negative 5 bps over an interpolated mid-swap rate based on the first date on which the company may exercise its residual call, Dec. 28, 2021.

In addition to the tender prices calculated, Kering will pay accrued interest up to but excluding the settlement date. Accrued interest is €30.05 per 2019 note, €715.75 per 2021 note and €28.77 per 2022 note.

Settlement is scheduled for April 9.

After settlement, there will be €300 million of the 2019 notes, €500 million of the 2020 notes, €400 million of the 2021 notes and €394.8 million of the 2022 notes outstanding.

Societe Generale Corporate & Investment Banking (+33 1 42 13 32 40 or liability.management@sgcib.com) is structuring adviser and a dealer manager with HSBC Bank plc (+44 20 7992 6237 or lm_emea@hsbc.com) and Royal Bank of Scotland plc trading as NatWest Markets (+44 20 7678 5282 or liabilitymanagement@natwestmarkets.com).

BNP Paribas Securities Services (+ 33 1 55 77 61 60 or paris.bp2s.offers@bnpparibas.com) is tender agent, and BNP Paribas Securities Services (+33 1 57 43 10 77 or paris.bp2s.information.agent@bnpparibas.com) is information agent.

Kering is a Paris-based manufacturer of luxury goods.

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