Enel buys €5 million of 6.5% securities at par in one-week tender

By Susanna Moon

Chicago, Jan. 15 – Enel SpA said holders had tendered €5 million of its 6.5% capital securities due Jan. 10, 2074 in the offer that ended at 11 a.m. ET on Jan. 14.

The issuer will accept for purchase all of the tendered notes at a price of par plus accrued interest with settlement set for Jan. 17, according to an update on Tuesday.

As announced Jan. 7, the issuer was tendering for its €518,256,000 of outstanding €1.25 billion 6.5% capital securities.

The offer price was to be par unless the amount purchased in the offer resulted in less than 10% of the original principal amount remaining after the offer, in which case the purchase price would have risen to 101% of par, according to a previous announcement.

The dealer manager is J.P. Morgan Securities plc (+44 207 134 2468 or emea_lm@jpmorgan.com). The tender agent is Lucid Issuer Services Ltd. (+44 0 20 7704 0880 or enel@lucid-is.com).

As announced Dec. 14, the company was holding the offer because “a procedural issue prevented a timely notification of the optional redemption notice” under the note terms.

“In order to ensure noteholders adhering to the offer to benefit of the same economic conditions,” the company will allow them to redeem the notes at par at about the same date of the first reset date of Jan. 10 via the tender offer, according to the previous announcement.

The notes were reduced through a liability management exercise that ended in May, as previously noted.

The issuer is a Rome, Italy-based electric utility company.

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