IBERDROLA today closed the largest bond swap ever carried out by a European company with an operation launched on March 27 which involved the issue of €1 billion of 6-1/2 year bonds (due October 2018). The bonds, with a spread of 240 basis points over midswaps and a 4.25% coupon, were placed with 385 investors (85% international) and nearly five times oversubscribed.
The strong demand reflected IBERDROLA’S continuing attraction to investors depsite increased volatility in the credit markets over recent weeks. Simultaneously, repurchase orders were made through Barclays for different company bonds in circulation with short maturities.
As a result of the operation, to be disbursed and exchanged on April 11, IBERDROLA will improve its liquidity position for the next 24 months by reducing May 2013 maturities by €316.45 million and those of March 2014 by €587.6 million. Debts maturing in 2013 and 2014 thus total €2,562 million and €3,464 million, respectively.
This operation further strengthens IBERDROLA’s balance sheet, which ended 2011 at nearly €9.3 billion, enough to meet funding needs for the next two years.
It was the third by IBERDROLA so far this year, following a €400 million, 4-year bond issue in the Euromarket in January, and a 250 million, 5-year Swiss Franc bond in the Swiss market in February.
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This announcement is not an offer for sale of securities in the United States, nor in any other jurisdiction. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended.
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