Today, Koninklijke KPN N.V. (“KPN”) announces its intention to issue a benchmark size Eurobond under its Global Medium Term Note programme. The proceeds from the new bond offering will be used to repurchase outstanding KPN bonds and for general corporate purposes including refinancing of existing debt.
Simultaneously, KPN announces an offer to repurchase up to GBP 250m of the outstanding GBP 400m 5.00% notes due 2026 (ISIN: XS0707430947) and GBP 850m 5.75% notes due 2029 (ISIN: XS0451790280) (the “Offers”). Terms are set out in the Tender Offer Memorandum dated 7 February 2024 and can be obtained from the Tender Agent.
The purpose of this transaction is to proactively manage KPN’s debt structure and reduce near term refinancing requirements. The transaction is expected to lower the average coupon level of KPN's bond portfolio.
KPN’s obligation to accept notes tendered in the relevant Offers is subject to the satisfaction or waiver of certain conditions, including the New Financing Condition, as described in the Tender Offer Memorandum.
The Offers will expire at 5:00 p.m. CET on 14 February 2024 unless extended.
Barclays, Deutsche Bank, Rabobank, Santander, SMBC and UniCredit have been appointed to act as Joint Lead Managers for the new bond offering and as Dealer Managers on the Offers. Kroll Issuer Services Limited has been appointed as Tender Agent.