TIDM63DW
RNS Number : 1755B
Hungary
28 January 2020
NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR
RESIDENT IN ANY JURISDICTION WHERE SUCH DISTRIBUTION WOULD BE
UNLAWFUL.
January 28, 2020
HUNGARY ANNOUNCES INDICATIVE SERIES ACCEPTANCE AMOUNTS AND
CLEARING SPREADS FOR THE PURPOSES OF ITS TENDER OFFERS FOR EACH OF
ITS OUTSTANDING U.S.$3,000,000,000 6.375% NOTES DUE 2021 (OF WHICH
U.S.$2,583,222,000 IS OUTSTANDING), U.S.$2,000,000,000 5.375% NOTES
DUE 2023 (OF WHICH U.S. $1,923,938,000 IS OUTSTANDING),
U.S.$2,000,000,000 5.75% NOTES DUE 2023 (OF WHICH
U.S.$2,000,000,000 IS OUTSTANDING) AND U.S.$2,000,000,000 5.375%
NOTES DUE 2024 (OF WHICH U.S.$2,000,000,000 IS OUTSTANDING).
Further to its announcement on January 21, 2020, Hungary (the
"Offeror"), announces today a non-binding indication of the level
at which it expects to set each Series Acceptance Amount and
Clearing Spread for each Series for the purposes of its invitation
to eligible holders of its outstanding (a) U.S.$3,000,000,000
6.375% Notes due 2021 (of which U.S.$2,583,222,000 is outstanding)
(ISIN: US445545AE60 / CUSIP: 445545AE6) (the "2021 Notes"), (b)
U.S.$2,000,000,000 5.375% Notes due 2023 (of which
U.S.$1,923,938,000 is outstanding) (ISIN: US445545AH91 / CUSIP:
445545AH9) (the "5.375% 2023 Notes"), (c) U.S.$2,000,000,000 5.75%
Notes due 2023 (of which U.S.$2,000,000,000 is outstanding) (ISIN:
US445545AJ57 / CUSIP: 445545AJ5) (the "5.75% 2023 Notes") and (d)
U.S.$2,000,000,000 5.375% Notes due 2024 (of which
U.S.$2,000,000,000 is outstanding) (ISIN: US445545AL04 / CUSIP:
445545AL0) (the "2024 Notes") (collectively, the "Notes" and each a
"Series") to tender their Notes for purchase by the Offeror for
cash (each an "Offer" and, together, the "Offers").
The Offers were made on the terms and subject to the conditions
set out in the Tender Offer Memorandum dated January 21, 2020 (the
"Tender Offer Memorandum"). Capitalized terms used in this
announcement but not defined have the meanings given to them in the
Tender Offer Memorandum.
Announcement of indicative Series Acceptance Amounts and
Clearing Spreads
As at the Expiration Deadline of 5:00 p.m. (New York City Time)
/ 11:00 p.m. (Central Europe Time) on January 27, 2020, the Offeror
had received valid tenders for purchase exceeding
U.S.$1,000,000,000 in aggregate nominal amount of the Notes, the
indicative aggregate nominal amount of Notes subject to the Offers
as set out in the Tender Offer Memorandum.
In the event that the Offeror decides to accept valid tenders of
Notes pursuant to the Offers, it expects to set (i) the Series
Acceptance Amount for the 2021 Notes at U.S.$500,000,000; (ii) the
Series Acceptance Amount for the 5.375% 2023 Notes at
U.S.$100,000,000; (iii) the Series Acceptance Amount for the 5.75%
2023 Notes at U.S.$251,010,000; and (iv) the Series Acceptance
Amount for the 2024 Notes at U.S.$148,990,000.
On the basis of each such Series Acceptance Amount, the Offeror
expects to set (i) the 2021 Notes Clearing Spread at 15 basis
points; (ii) the 5.375% 2023 Notes Clearing Spread at 40 basis
points; (iii) the 5.75% 2023 Notes Clearing Spread at 50 basis
points; and (iv) the 2024 Notes at 50 basis points.
Accordingly, the Offeror expects to accept 2021 Notes, 5.375%
2023 Notes and 2024 Notes tendered pursuant to valid
Non-Competitive Tender Instructions on a pro rata basis, with an
indicative Scaling Factor of approximately (i) 59.48% in the case
of the 2021 Notes, (ii) 62.20% in the case of the 5.375% 2023
Notes, and (iii) 61.10% in the case of the 2024 Notes. The Offeror
expects to accept all 5.75% 2023 Notes tendered pursuant to valid
Non-Competitive Tender Instructions without any pro rata scaling
and does not expect to accept any Notes tendered pursuant to valid
Competitive Tender Instructions.
Noteholders should note that this is a non-binding indication of
the level at which the Offeror expects to set the relevant Series
Acceptance Amounts and Clearing Spreads.
Pricing
Pricing in respect of the Offers will take place at or around
7:00 a.m. (New York City Time) / 1:00 p.m. (Central Europe Time)
today, January 28, 2020. As soon as reasonably practicable after
the Pricing Time on the Pricing Date, the Offeror will announce
whether it will accept valid tenders of Notes pursuant to any of
the Offers and, if so accepted, the Final Acceptance Amount, each
Series Acceptance Amount, each Clearing Spread, each Benchmark
Security Rate, each Purchase Yield, each Purchase Price and the
Accrued Interest for each of the Offers.
BNP Paribas, Citigroup Global Markets Limited and J.P. Morgan
Securities plc are acting as Dealer Managers and Lucid Issuer
Services Limited is acting as Information and Tender Agent.
Dealer Managers
BNP Paribas Citigroup Global Markets
10 Harewood Avenue Limited
London NW1 6AA Citigroup Centre
United Kingdom Canada Square
London E14 5LB
United Kingdom
Tel: +44 20 7595 8668
Attention: Liability Management Tel: +44 20 7986 8969
Group Attention: Liability
Email: liability.management@bnpparibas.com Management Group
Email: liabilitymanagement.europe@citi.com
J.P. Morgan Securities plc
25 Bank Street
Canary Wharf
London E14 5JP
United Kingdom
Tel: +44 20 7134 2468
Attention: Liability Management
Email: em_europe_lm@jpmorgan.com
Information and Tender Agent
Lucid Issuer Services Limited
Tankerton Works
12 Argyle Walk
London WC1H 8HA
United Kingdom
Telephone: +44 20 7704 0880
Attention: Arlind Bytyqi
Email: hungary@lucid-is.com
DISCLAIMER This announcement must be read in conjunction with
the Tender Offer Memorandum. No offer or invitation to acquire or
sell any securities is being made pursuant to this announcement.
The distribution of this announcement and the Tender Offer
Memorandum in certain jurisdictions may be restricted by law.
Persons into whose possession this announcement or the Tender Offer
Memorandum comes are required by the Offeror, the Dealer Managers
and the Information and Tender Agent to inform themselves about,
and to observe, any such restrictions.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TENPPUAWGUPUGGR
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