EDF (BBB CW Neg S&P / Baa1 Neg Moody’s / BBB+ Sta Fitch) (the “Company”) successfully priced a Euro-denominated 1 billion hybrid note offering (“New Notes”), at 7.5% coupon with a 6-year first call date.
The Company can redeem the New Notes for cash at any time during the 90 days before the first interest reset date, which is expected to be in six years and on every coupon payment date thereafter. Although the proposed New Notes are perpetual, they can be called at any time for withholding tax, tax deductibility, tax gross-up, rating methodology, accounting, or clean-up call event, or through the exercise of the make-whole call. The amount of New Notes issued has been calibrated so that EDF’s aggregate outstanding nominal amount of hybrid capital does not decrease by more than 10% after redemption of the USD Hybrid Notes ([1]) and the Company remains committed to hybrid capital securities as a permanent part of its capital structure.
Therefore, following the success of this New Notes issue, the Company announces its intention to exercise its option to redeem in whole on January 29, 2023 the USD Hybrid Notes, and which are admitted to trading on the regulated market of the Luxembourg Stock Exchange. If the Company proceeds with the redemption, the holders of the USD Hybrid Notes will be formally notified of such redemption according to the Terms and Conditions of the USD Hybrid Notes.
The New Notes will be admitted to trading on Euronext Paris. It is also expected that the rating agencies will assign the New Notes a rating of B+/Ba1/ /BBB- (S&P/ Moody’s/Fitch) and an equity content of 50%.