ABB announces total consideration for Tender Offer for 3.800% notes due 2028 and 4.375% notes due 2042

Rhea-AI Summary

ABB Ltd announced the total consideration for its cash tender offer for the 3.800% Notes due 2028 and 4.375% Notes due 2042. The total considerations for the Notes are $1,193.72 for the 3.800% Notes and $1,325.34 for the 4.375% Notes, as calculated today. The Offer expires at 5:00 p.m. NYC time on October 30, 2020. Holders whose Notes are accepted will receive accrued interest up until November 4, 2020. Results will be announced on November 2, 2020. ABB emphasizes that the Offer is subject to certain conditions and urges holders to review the Offer to Purchase.

Positive

• Total consideration for 3.800% Notes is $1,193.72, reflecting a premium over par value.
• Total consideration for 4.375% Notes is $1,325.34, demonstrating strong demand.

Negative

• None.

ZURICH, Oct. 30, 2020 /PRNewswire/ -- ABB Ltd (ABBN: SIX Swiss Ex) ("ABB") announced today the applicable total consideration for the 3.800% Notes due 2028 (CUSIP No. 00037B AF9) and 4.375% Notes due 2042 (CUSIP No. 00037B AC6) (collectively, the "Notes"), subject to the previously announced cash tender offer by ABB Finance (USA) Inc (the "Offer"). The applicable total consideration for the Offer was calculated by the dealer managers (as specified below) at 10:00 a.m. New York City time, today. 

The Offer is being made on the terms and subject to the conditions set forth in the Offer to Purchase, dated October 26, 2020 (the "Offer to Purchase").

The consideration for each $1,000 principal amount of each series of Notes validly tendered at or prior to the Expiration Date or the Guaranteed Delivery Date and not validly withdrawn (each, a "Total Consideration"), is set forth in the table below.  In addition to the applicable Total Consideration, holders whose Notes of a given series are accepted for purchase will be paid accrued and unpaid interest on such Notes to, but not including, November 4, 2020, which is expected to be the Settlement Date for the Offer.

The table below sets forth certain information regarding the Notes and the Offer.

Title of Security		CUSIP / ISIN Numbers		Reference Treasury Security		Reference Yield		Fixed Spread (basis points)		Total Consideration for $1,000 Principal Amount
3.800% Notes due April 2028		00037B AF9 / US00037BAF94		0.625% U.S. Treasury Notes due August 15, 2030		0.842%		15		$1,193.72
4.375% Notes due May 2042		00037B AC6 / US00037BAC63		1.25% U.S. Treasury Notes due May 15, 2050		1.625%		80		$1,325.34

 

The Offer will expire at 5:00 p.m., New York City time, on October 30, 2020 (such time and date, as it may be extended, the "Expiration Time"), unless extended or earlier terminated by the Issuer. Any Notes tendered may be withdrawn at any time at or before the Expiration Time by following the procedures described in the Offer to Purchase.  Results of the Offer will be announced on November 2, 2020.

The Issuer's obligation to accept for purchase and to pay for Notes that have been validly tendered and not validly withdrawn pursuant to the Offer is subject to the satisfaction or waiver, in the Issuer's discretion, of certain conditions, which are more fully described in the Offer to Purchase. The complete terms and conditions of the Offer are set forth in the Offer to Purchase. Holders of the Notes are urged to read the Offer to Purchase carefully. Capitalized terms used here and not defined have the meanings ascribed to them in the Offer to Purchase.

The Issuer has retained D.F. King & Co., Inc. as the tender agent and information agent (the "Information Agent") for the Offer. The Issuer has retained Merrill Lynch International and HSBC Bank plc as the dealer managers 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.

This press release shall not constitute an offer to buy or a solicitation of an offer to sell any Notes. The Offer is being made solely pursuant to the Offer to Purchase. The Offer is not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the securities laws or blue sky laws require the Offer to be made by a licensed broker or dealer, the Offer will be deemed to be made on behalf of the Issuer by one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.

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 is the total consideration for ABB's 3.800% Notes due 2028?

The total consideration for ABB's 3.800% Notes due 2028 is $1,193.72.

When does the tender offer for ABB's Notes expire?

The tender offer for ABB's Notes expires at 5:00 p.m. NYC time on October 30, 2020.

What will holders receive on the settlement date for ABB's Notes?

Holders whose Notes are accepted will receive accrued interest up to November 4, 2020.

When will the results of ABB's tender offer be announced?

The results of ABB's tender offer will be announced on November 2, 2020.