Photo credit © Orange
(Boursier.com) — Orange intends to issue a new strain of hybrid bonds and launch a repurchase offer on certain of its existing hybrid bonds. The operator intends to issue a new series of super-subordinated bonds with an indefinite duration denominated in euros, including a first early redemption option at the option of the Company from December 15, 2030 and bearing interest at a fixed rate. readjustable. The determination of the issue price of the New Bonds is expected to be announced later today. It is expected that the New Bonds will be admitted to trading on Euronext Paris. It is also expected that the rating agencies will assign the New Bonds a rating of BBB-/Baa3/BBB- (S&P / Moody’s / Fitch) and consider them as 50% equity.
The Company also announces the launch of a contractual buyback offer aimed at:
– its super-subordinated bonds with an indefinite duration in the amount of one billion euros having a first interest rate resetting date of April 15, 2025, bearing interest at a fixed, readjustable rate (of which 1 billion euros is in circulation) and admitted to trading on Euronext Paris (ISIN FR0013413887 – Existing Bonds NC 2025); And
– its super-subordinated bonds with an indefinite duration in the amount of 1.25 billion euros having a first interest rate resetting date of October 1, 2026, bearing interest at a fixed, readjustable rate and admitted to trading on Euronext Paris (ISIN
within the limit of a maximum redemption amount expected as equal to the amount of the New Bonds and, for each strain of Existing Bonds, within the limit of a specific maximum redemption amount, these amounts having to be communicated at the end of the setting of the price of the New Bonds.
The objective of the repurchase offer and the planned issuance of the new bonds is in particular to proactively manage the portfolio of hybrid instruments. The repurchase offer also provides qualified holders the opportunity to sell their existing bonds before their respective first interest rate reset date and request priority in the allocation of the new bonds.
The Tender Offer will close on April 4 at 5:00 p.m. CST, with results announced on April 5, 2024 – subject to any extension, withdrawal, termination, reopening or modification of this Offer.
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