Alpiq optimises financial liabilities

Lausanne – Alpiq Holding AG (Alpiq) has successfully concluded its buyback of outstanding senior CHF bonds due 2015-2018. As a result, the company has reduced its gross debt by CHF 543.4 million. Simultaneously, Alpiq has successfully placed a senior bond for CHF 300 million with a tenor of ten years on the market. The proceeds will be used for refinancing purposes and investments in new growth areas under the Alpiq Group strategy.

The cash tender offer was limited to a maximum par value of CHF 500 million and concerned seven senior bonds due 2015-2018 with a total par value amounting to CHF 1.75 billion. The 9-day cash tender offer period ended on 17 July 2014. In total, bonds amounting to a par value of CHF 667.8 million were tendered for buyback. Of these bonds, Alpiq accepted CHF 543.4 million. The bonds bought back will be cancelled. The settlement on 29 July 2014 marks the completion of Alpiq’s cash tender offer. The company will have thereby reduced its gross debt and future funding costs.

Concurrently to the cash tender offer of existing senior bonds, Alpiq has issued a new bond for a par value amounting to CHF 300 million with a tenor of ten years and a coupon of 2.625 percent. With the new bond, Alpiq takes advantage from the low interest rate environment and lengthens its debt maturity profile. The proceeds will be used for refinancing purposes and investments in new growth areas under the Alpiq Group strategy. The bond settlement is expected to take place on 29 July 2014.