ABB announces the expiration and final results of the tender offer for 3.800% notes due 2028 and 4.375% notes due 2042

Rhea-AI Summary

ABB Ltd has announced the expiration of its cash tender offer for two bond series, specifically the 3.800% Notes due 2028 and 4.375% Notes due 2042. The tender offer, which ended on October 30, 2020, saw valid tenders of approximately US $366.8 million for the 2028 notes and US $140.5 million for the 2042 notes. Payment for these notes is expected on November 4, 2020. The offer was facilitated by Merrill Lynch International and HSBC Bank plc, with D.F. King & Co., Inc. acting as the tender agent.

Positive

• Total valid tenders for 3.800% Notes due 2028 amounted to US $366,827,000.
• Total valid tenders for 4.375% Notes due 2042 amounted to US $140,491,000.
• Payment for validly tendered notes expected by November 4, 2020.

Negative

• Only 49% of the 3.800% Notes due 2028 were tendered, indicating potential low investor confidence.
• Only 18.6% of the 4.375% Notes due 2042 were tendered, raising concerns about future funding.

ZURICH, Nov. 2, 2020 /PRNewswire/ -- ABB Ltd (ABBN: SIX Swiss Ex) ("ABB") announced today that the cash tender offer by ABB Finance (USA) Inc. (the "Issuer") for any and all outstanding  3.800% Notes due 2028 (CUSIP No. 00037B AF9) and 4.375% Notes due 2042 (CUSIP No. 00037B AC6) (collectively, the "Notes") (the "Offer"), expired at 5:00 p.m., New York City time, October 30, 2020 (the "Expiration Time"). At the Expiration Time, valid tenders had been received in the amounts set forth in the table below.

 

Title of Security		CUSIP / ISIN Numbers		Aggregate Principal Amount Outstanding		Aggregate Principal Amount Tendered(1)		Aggregate Principal Amount Tendered using Guaranteed Delivery Procedures
3.800% Notes due April 2028		00037B AF9 / US00037BAF94		US $750,000,000		US $366,827,000		US $1,076,000
4.375% Notes due May 2042		00037B AC6 / US00037BAC63		US $750,000,000		US $140,491,000		US $250,000

(1)	Excluding principal amounts of Notes tendered using Guaranteed Delivery Procedures (as stipulated in the Issuer's Offer to Purchase, dated October 26, 2020 (the "Offer to Purchase").

The Issuer expects to accept for payment all Notes validly tendered and not validly withdrawn in the Offer and expects to make payment for the Notes tendered prior to the Expiration Time in same-day funds on November 4, 2020, including with respect to the Notes tendered pursuant to the Guaranteed Delivery Procedures.

Merrill Lynch International and HSBC Bank plc served as the dealer managers for the Offer. D.F. King & Co., Inc. served as the tender agent and information agent for the Offer.

Holders who would like additional copies of the Offer to Purchase may call or email the Information Agent at (212) 269-5550 (banks and brokers), (800) 317-8033 (all others) or abb@dfking.com. Copies of the Offer to Purchase are also available at the following website: https://sites.dfkingltd.com/abb. Questions regarding the terms of the Offer should be directed to HSBC Bank plc at +44 20 7992 6237 (Europe), +1 888 HSBC 4LM (toll free), +1 212 525 5552 (collect) or liability.management@hsbcib.com or to Merrill Lynch International at +44-20-7996-5420 (Europe), +1 (888) 292-0070 (toll free), +1 (980) 387-3907 (collect) or DG.LM-EMEA@bofa.com.

ABB is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB's success is driven by about 110,000 talented employees in over 100 countries. More information about ABB can be found at https://global.abb/group/en/investors.

Important notice about forward-looking information

This press release includes both historical and forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are not historical facts, but only predictions and generally can be identified by use of statements that include phrases such as "will," "may," "should," "continue," "anticipate," "believe," "expect," "plan," "appear," "project," "estimate," "intend," or other words or phrases of similar import. Similarly, statements that describe the Issuer's objectives, plans or goals also are forward-looking statements. These forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated. Factors that could materially affect these forward-looking statements can be found in ABB's periodic reports filed with the SEC. Holders are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements speak only to the date on which they were made, and neither ABB nor the Issuer undertake any obligation to update publicly these forward-looking statements to reflect new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events might or might not occur. The issuer cannot assure you that projected results or events will be achieved.

— For more information please contact:
Media Relations Phone: +41 43 317 71 11 Email: media.relations@ch.abb.com	Investor Relations Phone: +41 43 317 71 11 Email: investor.relations@ch.abb.com	ABB Ltd Affolternstrasse 44 8050 Zurich Switzerland

 

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SOURCE ABB Finance (USA) Inc.

FAQ

What were the valid tenders for ABB's 3.800% Notes due 2028?

The valid tenders amounted to approximately US $366,827,000.

What is the expected payment date for the tendered notes?

Payment is expected on November 4, 2020.

How much was tendered for ABB's 4.375% Notes due 2042?

The valid tenders for the 4.375% Notes due 2042 were approximately US $140,491,000.

Who managed ABB's tender offer for the notes?

Merrill Lynch International and HSBC Bank plc served as dealer managers.

What is the expiration date of ABB's cash tender offer?

The expiration date was October 30, 2020, at 5:00 p.m. New York City time.