Glencore to buy back $521.7 million 5% convertibles under tender offer

By Marisa Wong

Madison, Wis., June 17 – Glencore Finance (Europe) SA announced it accepted for repurchase $521.7 million of its outstanding $2.3 billion 5% convertible bonds due 2014.

Glencore began a tender offer for up to $600 million of its 5% convertible bonds on Monday.

Following a reverse bookbuilding conducted by Citigroup Global Markets Ltd. and Societe Generale CIB as joint dealer managers, the final repurchase price was set at 110.75% of par.

As announced on Monday, the purchase price was set using a modified Dutch auction procedure with a minimum purchase price per bond of 108.5% of par, excluding accrued interest per bond of $2,361.11.

The company will also pay accrued interest up to but excluding the settlement date of June 20.

The transaction will be financed with the company’s current liquidity position, the company previously noted.

Parent company Glencore plc is a supplier of commodities and raw materials to industrial consumers and is based in Baar, Switzerland.

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