Vodafone launches cash tender offers for up to €2 billion in notes

LONDON - Vodafone Group Plc (LON:VOD) announced Monday the launch of cash tender offers to purchase up to €2 billion equivalent in aggregate principal amount of certain outstanding U.S. dollar and sterling denominated notes due between 2043 and 2059.

The tender offers target seven series of notes with varying acceptance priority levels, with the 4.25% Notes due 2050 having the highest priority. The company has set a sub-cap of $750 million for these 2050 Notes.

The offers are subject to a financing condition, contingent upon Vodafone (NASDAQ:VOD)’s successful completion of new sterling-denominated notes and euro-denominated notes to be issued by Vodafone International Financing DAC, a wholly owned subsidiary of the company.

Notes will be purchased according to their acceptance priority levels, with higher priority notes being accepted before those with lower priority. If the maximum tender amount is reached by the early tender deadline of July 14, holders who tender notes after this date will not have their notes accepted unless Vodafone increases the maximum amount.

Holders whose notes are accepted will receive the applicable total consideration, which includes an early tender premium of $50 for dollar-denominated notes or £50 for sterling-denominated notes if tendered by the early tender deadline. Those tendering after the early deadline but before the July 29 expiration date will receive only the tender offer consideration without the premium.

The company stated in the press release that the offers and issuance of new notes are being undertaken to "proactively manage the Company’s outstanding debt portfolio."

Merrill Lynch International and Deutsche Bank (ETR:DBKGn) are serving as dealer managers for the offers, which are expected to settle on July 17 for early tenders and July 31 for final tenders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.