EDP holds one-week tender for up to €400 million of five note series

By Susanna Moon

Chicago, Nov. 29 – Energias de Portugal, SA is tendering for up to €400 million principal amount five series of notes issued by subsidiary EDP Finance BV until noon ET on Dec. 6.

Pricing will be set at 9 a.m. ET on Dec. 7 as follows, assuming a settlement date of Dec. 11:

• €650 million 2.625% instruments due April 15, 2019 using a purchase yield of 0% for a price of 100.899;

• €300 million 4.125% notes due June 29, 2020 using a purchase yield of 0% for a price of 106.385;

• €750 million 4.875% instruments due Sept. 14, 2020 using a purchase yield of 0% for a price of 108.575;

• €600 million 4.125% instruments due Jan. 20, 2021 using the 2021 interpolated mid-swap rate plus 30 basis points; and

• €1 billion 2.625% instruments due Jan. 18, 2022 using the 2022 interpolated mid-swap rate plus 45 bps.

Holders also will receive accrued interest.

EDP is “seeking to optimize the EDP Group's liability portfolio and increase the average life of the EDP Group’s debt. To support these objectives, the offeror wishes to use available cash to reduce the amount of the EDP Group's outstanding debt as part of its ongoing liability management strategy,” according to a company announcement.

The company said it will “determine the allocation of the final acceptance amount between the instruments of each series in its sole discretion and reserves the right to accept significantly more or significantly less (or none) of the instruments of any series.”

The dealer managers are Morgan Stanley & Co. International plc (+44 20 7677 7799 or liabilitymanagementeurope@morganstanley.com) and Societe Generale (+33 142 13 32 40 or liability.management@sgcib.com). The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or edp@lucid-is.com).

The financial services subsidiary of Energias de Portugal is based in Amsterdam.

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