Snam successfully completed the launch of fixed-rate bonds reserved for institutional investors on Monday. The issue, maturing in October 2026, reached a total amount of 1,250 billion euro, as part of the EMTN (Euro Medium Term Notes) Program approved by the Board of Directors on 27 September 2016. The bonds will be listed on the Stock Exchange Luxembourg. This was announced in a press release from the group.
The operation has registered a demand equal to approximately 2 times the offer, with a high quality and a wide geographical diversification of the investors. The characteristics of the new bonds are as follows:
Amount: 1.250 million euros
Deadline: 25 October 2026
Annual coupon of 0,875% with a re-offer price of 99,506 (corresponding to a spread of
50 basis points on the reference mid swap rate)
The placement is aimed at institutional investors and was organized and managed, as Joint Bookrunners, by Banca IMI, Barclays, BNP Paribas, BofA Merrill Lynch, Citi, Credit Agricole, Goldman Sachs, HSBC, ING, JP Morgan, MUFG, SMBC Nikko and Société Générale.
Also on Monday, BNP Paribas also launched a tender offer on the following bonds already issued by Snam:
? €1,250,000,000 2.375 per cent. Notes due 30 June 2017 (of which €999.915.000 to be repaid) (XS0914292254)
? €1,500,000,000 3.875 per cent. Notes due 19 March 2018 (of which €1.200.046.000 to be repaid) (XS0829183614)
? €1,000,000,000 5.000 per cent. Notes due 18 January 2019 (of which €850.050.000 to be repaid) (XS0806449814)
? €500,000,000 1.500 per cent. Notes due 24 April 2019 (XS1061410962)
? €1,250,000,000 3.500 per cent. Notes due 13 February 2020 (XS0853682069)
? €500,000,000 3.375 per cent. Notes due 29 January 2021 (XS0914294979)
? €1,000,000,000 5.250 per cent. Notes due 19 September 2022 (XS0829190585)
? €750,000,000 1.500 per cent. Notes due 21 April 2023 (XS1126183760)
? €750,000,000 1.375 per cent. Notes due 19 November 2023 (XS1318709497)
? €600,000,000 3.250 per cent. Notes due 22 January 2024 (XS1019326641)
for a target amount equal to a total maximum of 2 billion euros, under the terms and conditions contained in the Tender Offer Memorandum dated 10 October 2016.
The new bond issue may be destined, in whole or in part - the press release concludes - to an exchange with the bonds that BNP Paribas may have purchased with the Tender Offer. The completion of the issue launched today by Snam – which will materialize through the placement of the new bonds to institutional investors – is, among other things, a condition, envisaged in the agreements reached, for the exchange to take place.
