LONDON: ITV plc has extended an offer to repurchase its outstanding €600 million 1.375% notes due in September 2026. The buyback is contingent on the successful issuance of new debt under the company’s Euro Medium Term Note Programme.
The tender offer, detailed in a memorandum released on June 7, 2024, invites note holders to sell their holdings back to ITV for cash. This offer hinges on a condition known as the ‘New Issue Condition,’ which may be satisfied or waived depending on the outcome of the new debt issuance.
ITV aims to purchase up to €240 million of the notes, with the potential to adjust this target based on the volume of tenders received and at the company’s discretion. The purchase price will be determined on June 18, 2024, factoring in a 40 basis points spread above the Interpolated Mid-Swap Rate.
This repurchase initiative is part of ITV’s broader strategy to extend its debt maturity efficiently while providing liquidity to note holders. Notes acquired through this offer are slated for cancellation and will not re-enter the market.
The decision to accept any tendered notes lies solely with ITV, and the company reserves the right to reject tenders for any reason. The final acceptance of notes will be announced following the determination of the purchase price.
The announcement also signals ITV’s intention to issue a new series of euro-denominated fixed-rate notes, subject to market conditions. The success of this new issuance is critical to the execution of the tender offer, with ITV retaining the option to waive the New Issue Condition at its discretion.