Hungary announces results and pricing for three-note tender offer

Chicago, June 14 – Hungary announced the results of its capped $1.35 billion total nominal amount tender offer covering three series in two announcements on Tuesday.

The offeror is keeping under the cap and will accept a total of $1,188,724,000 nominal amount of notes.

At priority acceptance level one, Hungary was offering to buy from the $1,517,582,000 outstanding of the original $2 billion 5 3/8% notes due 2023 (Cusip: 445545AH9) with pricing determined using the 1/8% U.S. Treasury due February 2023 plus 55 basis points.

The series acceptance amount is $558,286,000 without any proration with a purchase price of $1,014.95 per $1,000 notes and $17.17 in interest.

The tender offer covering the other two series was conducted as a modified Dutch auction. In both cases the maximum clearing spreads are being used.

At priority level two, the tender offer covered the $1,631,160,000 outstanding of the original $2 billion 5¾% notes due 2023 (Cusip: 445545AJ5) with pricing based on the ¼% U.S. Treasury due November 2023 and a purchase spread of 90 bps, the maximum clearing spread.

The series acceptance amount is $479.4 million, an amount that represents all of the non-competitive tenders and none of the competitive tenders. The notes are being purchased at $1,023.58 per $1,000 note and $3.83 in interest.

Also at priority level two, the tender offer covered the $1,794,010,000 outstanding of the original $2 billion 5 3/8% notes due 2024 (Cusip: 445545AL0) with pricing based on the 2¼% U.S. Treasury due March 2024 and a purchase spread of 95 bps, the highest possible clearing spread.

Similarly, Hungary is accepting all of the non-competitive tenders and none of the competitive tenders. This means that $151,038,000 of the notes will be accepted for $1,019.62 per $1,000 note and $12.09 in interest.

Settlement is planned for June 16.

Pricing took place at 7 a.m. ET on June 14.

The offers are subject to a new financing condition.

The dealer managers for the offer are BNP Paribas (+33 1 55 77 78 94, liability.management@bnpparibas.com), Deutsche Bank AG (+44 20 7545 8011), Goldman Sachs Bank Europe SE (+44 20 7774 4836, liabilitymanagement.eu@gs.com), ING Bank NV (+44 20 7767 6784, liability.managemnt@ing.com) and J.P. Morgan SE (+44 20 7134 2468, em_europe_lm@jpmorgan.com).

Kroll Issuer Services Ltd. is the information and tender agent (+44 20 7704 0880, hungary@is.kroll.com, https://deals.is.kroll.com/hungary).

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