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Adecco Group successfully places 500 million euro of 8-year notes and launches a tender offer on two existing notes
Zurich, Switzerland, 23 November 2016: the Adecco Group (rated BBB+ by S&P, Baa1 by Moody’s) has placed a 500 million euro fixed rate notes issue, maturing in 2024, under its EMTN Programme (the “New Notes”) to be listed on the London Stock Exchange. Today, the Adecco Group also launched a tender offer on two existing notes maturing in April 2018 and November 2019.
The features of the New Notes, which are reserved for institutional investors, are as follows:
Issuer: Adecco International Financial Services B.V.
Guarantor: Adecco Group AG
Amount: EUR 500 million
Maturity: 2 December 2024
Adecco Refinancing B.V. (the “Offeror”) has simultaneously launched a tender offer (the “Tender Offer”) of Adecco International Financial Services B.V.’s €500,000,000 4.75 per cent. Notes due 13 April 2018 (XS0616395199 (the “2018 Notes”)), and €400,000,000 2.75 per cent. Notes due 15 November 2019 (XS0953093308 (the “2019 Notes” and, together, with the 2018 Notes, the “Existing Notes”) in accordance with the terms and conditions of the tender offer memorandum dated 23 November 2016 (the “Tender Offer Memorandum”). The Tender Offer Memorandum and the launch notice of the Tender Offer have been distributed to holders of the Existing Notes in accordance with the distribution restrictions contained therein. The launch notice is also available on the website of the London Stock Exchange at http//www.londonstockexchange.com/exchange/news/markets-news-home.html.
The proceeds of the New Notes will be used to finance the Tender Offer. The completion of the Tender Offer is subject to the successful completion of the issue of the New Notes (the “New Financing Condition”). The Offeror may, in its sole and absolute discretion, waive the New Financing Condition.
The Tender Offer and issue of New Notes are being made to optimise the Adecco Group’s debt maturity profile and cost of capital, in line with the Adecco Group’s objectives.
Adecco has mandated SG CIB as global coordinator, BofAML, ING, Natixis and SG CIB as joint bookrunners on the new issue, and Natixis and SG CIB as Dealer Managers on the Tender Offer.
The results of the Tender Offer are expected to be announced on 1 December 2016.