Glencore Xstrata Plc To buy back up to $600M in Convertible Bonds due 2014
announces that it intends to invite holders of the Bonds to tender their Bonds for repurchase by Glencore for cash (the "Repurchase"). Glencore is targeting an aggregate principal amount of approximately USD 600 million for the Repurchase. The Repurchase will be financed with Glencore's current liquidity position.
Citigroup Global Markets Limited and SocitGnrale Corporate & Investment Banking are acting as Joint Dealer Managers in connection with the Repurchase, which will be conducted on the date of this announcement by solicitation of indications from certain holders of the Bonds, outside the United States and subject to the Invitation and Distribution Restrictions below, of their interest in selling such Bonds to Glencore as part of a reverse bookbuilding process. Depending on the indications of interest received, Glencore may decide not to repurchase the Bonds which are tendered.
If any Bonds are repurchased, the purchase price that Glencore will pay for each Bond will be determined pursuant to a modified Dutch auction procedure with a minimum purchase price per Bond of 108.50% of the principal amount of such Bond (excluding accrued interest per Bond of USD 2,361.11).
Glencore retains complete discretion as to the final size of the Repurchase and may in its sole discretion determine not to proceed with the Repurchase. The reverse bookbuilding period is expected to close at 5.00 pm (London time) on the date of this announcement, subject to the right of Glencore to close or extend, at its sole discretion, the reverse bookbuild at any time. Glencore encourages holders to contact the Joint Dealer Managers promptly if they wish to participate in the reverse bookbuilding as Glencore retains the right to close the bookbuilding period early. It is expected that the purchase price and the principal amount of the Bonds accepted for repurchase will be confirmed on 16 June 2014 and the settlement date in relation to the Bonds to be repurchased is expected to be on 20 June 2014. Accrued interest will be paid on Bonds tendered and accepted for repurchase up to (but excluding) the Settlement Date.