Telia prices, gives results of tender offers for 2077, 2078 securities

By Marisa Wong

Los Angeles, March 30 – Telia Co. AB announced the final results of and pricing for its tender offers for its outstanding €900 million subordinated fixed-rate reset six-year non-call capital securities due 2078 (ISIN: XS1590787799) and SEK 5 billion subordinated floating-rate 5.5-year non-call capital securities due 2077 (ISIN: S1590783533).

According to a Wednesday press release, Telia had received tenders for €588,165,000 of the fixed-rate securities due 2078 and SEK 3,688,490,000 of the floating-rate securities due 2077.

The issuer has decided to accept a total of €501,729,361 (equivalent to SEK 5,188,885,048) of securities under the offer. The securities will be accepted on a pro rata basis.

Specifically, the company will accept

• €200,044,000 of the €588,165,000 tendered fixed-rate securities due 2078 using a scaling factor of 32.25% at a tender price of 102.459, plus accrued interest of €29.67 per €1,000 principal amount; and

• SEK 3,120,030,000 (equivalent to €301,685,361) of the SEK 3,688,490,000 tendered floating-rate securities due 2077 using a scaling factor of 84.88 at a tender price of 101.25, plus accrued interest of SEK 67.80 per SEK 10,000 principal amount.

As originally announced on March 22, Telia offered to purchase the securities for cash up to a maximum amount. The cap was conditioned on new financing. The issuer expected to set the maximum acceptance amount equal to the amount of the new securities.

The tender price for the 2078 securities was based on the interpolated mid-swap rate of minus 0.046% and an offer spread of 60 basis points. The tender price for the 2077 securities was already fixed at 101.25.

The offers expired at noon ET on March 29.

Pricing was determined at or around 9 a.m. ET on March 30.

Settlement is slated for March 31.

Barclays Bank Ireland plc (eu.lm@barclays.com, +44 20 3134 8515) and Nordea Bank Abp (nordealiabilitymanagement@nordea.com, +45 6161 2996) are dealer managers for the tender offers.

Lucid Issuer Services Ltd. (+44 20 7704 0880, attn.: Harry Ringrose, telia@lucid-is.com, https://deals.lucid-is.com/telia) is the tender agent.

Telia is a telecommunications company based in Solna, Sweden.

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