Czech Republic’s CEZ tenders for 4¼% dollar notes, some 4½% euro notes

By Susanna Moon

Chicago, Nov. 12 – CEZ, AS said it began a tender offer for any and all of its $700 million 4¼% notes due 2022.

Pricing will be set at 11 a.m. ET on Nov. 19 using the yield to maturity based on the bid-side price of the 2% U.S. Treasury note due Aug. 15, 2025 plus 70 basis points, according to a company announcement.

The tender offer will end at 5 p.m. ET on Nov. 19.

The company also will pay accrued interest up to but excluding the settlement date of Nov. 24.

Concurrently with the tender offer, the company said it is offering to repurchase up to €400 million less the euro equivalent of the aggregate nominal amount of the 4¼% notes accepted for purchase.

The dealer managers are Banca IMI SpA (212 326-1105 or liability.management@bancaimi.com), Citigroup Global Markets Ltd. (+44 20 79868969, 800 558-3745, 212 723-6106 or liabilitymanagement.europe@citi.com) and Societe Generale (+44 20 7676 7579, 855 881-2018 or liability.management@sgcib.com).

The tender agent is Citibank, NA (+44 20 7508 3867 or exchange.gats@citi.com).

Concurrent offer

CEZ also is tendering for its €750 million 4½% notes due 2020 until 11 a.m. ET on Nov. 19, with a cap equal to €400 million less the euro equivalent of the 4¼% notes purchased in the any and all tender offer, according to a separate company notice.

Pricing will be set at 8 a.m. ET on Nov. 20 using the interpolated mid-swap rate plus a purchase spread of 35 bps.

The company said it reserves the right to buy back less or more than the capped amount of notes in the offer.

Tender instructions must be submitted for a nominal amount of at least €50,000 and in integral multiples of €1,000 after that.

Settlement has been set for Nov. 24.

Banca IMI SpA (+39 02 7261 5938 or liability.management@bancaimi.com), Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com) and Societe Generale (+44 20 7676 7579 or liability.management@sgcib.com) are the dealer managers.

The tender agent is Citibank, NA (+44 20 7508 3867 or exchange.gats@citi.com).

The tender offers are being made as part of the company’s liquidity management and are aimed at optimizing its liquidity position and its cost of debt, the company said.

CEZ is a Prague-based conglomerate focused on electricity, trade and coal mining.

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