TotalEnergies SE: NOTICE OF REDEMPTION DATED 20 MARCH 2024

Rhea-AI Summary

TotalEnergies SE (TTE) announces the redemption of €1,500,000,000 Undated Non-Call 5.0 Year Deeply Subordinated Fixed Rate Resettable Notes on April 4, 2024, at a redemption price of €101,750.00 per €100,000 denomination, including accrued interest.

Financial Analyst

The redemption of the €1,500,000,000 Undated Non-Call 5.0 Year Deeply Subordinated Fixed Rate Resettable Notes by TotalEnergies SE signifies a strategic financial decision which could impact the company's debt structure and interest payment obligations. By redeeming these notes, the company is choosing to pay back its creditors on the specified Redemption Date, which is a move that could potentially improve its creditworthiness and debt-to-equity ratio. This action suggests that TotalEnergies SE is in a position to manage its long-term liabilities, possibly indicating a strong balance sheet or cash position.

Investors and analysts often view such redemptions positively, as they can lead to reduced financial leverage and interest expenses, which in turn could enhance net income and earnings per share over time. However, it is also important to consider the source of funds for this redemption. If the company is using its operational cash flow, it reflects financial strength, but if it's raising new debt at potentially higher interest rates to redeem these notes, it could be less favorable.

The market's response to this news will depend on the perceived rationale behind the redemption and the company's current financial health. For stakeholders, the key takeaway is to monitor TotalEnergies SE's future interest expenses and leverage metrics as they will be directly affected by this redemption.

Debt Market Analyst

The notice from TotalEnergies SE regarding the redemption of deeply subordinated notes is significant for the debt market, particularly for those specializing in corporate bonds. Deeply subordinated debt is often considered higher risk compared to senior debt, as it is lower in the repayment hierarchy in the event of liquidation. The redemption of such notes is a signal of a company's liquidity and its strategic prioritization of debt management.

The fixed rate resettable feature of these notes is also of interest, as it suggests that the initial interest rate was set for a period of five years, after which it would be reset. The decision to redeem rather than let the rate reset could indicate that the company anticipates unfavorable changes in interest rates or prefers the certainty of removing the obligation from its books.

For investors in the debt market, the redemption price, set at €101,750.00 per €100,000 denomination, includes accrued interest, which provides a slight premium over the principal. This event may influence the pricing and demand for future TotalEnergies SE debt issuances, as the company's proactive management of its debt may be viewed as a positive indicator of its financial strategy and risk management.

to the holders of the

€1,500,000,000 Undated Non-Call 5.0 Year

Deeply Subordinated Fixed Rate Resettable Notes

ISIN: XS1974787480

Common Code: 197478748

PARIS--(BUSINESS WIRE)-- Regulatory News:

NOTICE IS HEREBY GIVEN that, pursuant to Condition 6.2 (Optional Redemption) of the terms and conditions of the Euro 1,500,000,000 Undated Non-Call 5.0 Year Deeply Subordinated Fixed Rate Resettable Notes (the “Notes”) issued on 4 April 2019 by TotalEnergies SE (formerly TOTAL SE and TOTAL S.A.) (Paris:TTE) (LSE:TTE) (NYSE:TTE), incorporated as a European Company (societas europaea) registered in the Republic of France, under RCS 542 051 180 Nanterre) (the “Issuer”) under its €35,000,000,000 Euro Medium Term Note Programme described in the prospectus dated 2 April 2019 (the “Prospectus”), the Issuer hereby elects to redeem all of the Notes outstanding on the Redemption Date (as defined below) in an aggregate principal amount of €1,500,000,000 (the “Redeemed Notes”) on 4 April 2024 (the “Redemption Date”). This notice is irrevocable. Capitalized terms used herein and not defined are used as defined in the Prospectus.

The redemption price of the Redeemed Notes is equal to their principal amount, which is issued in denominations of €100,000, together with any accrued interest and Arrears of Interest (including any Additional Interest Amounts thereon), if any, on the Redeemed Notes, from 4 April 2023 to, but excluding, the Redemption Date (the “Redemption Price”). The Redemption Price amounts to €101,750.00 per €100,000 denomination.

Upon the Redemption Date, the Redeemed Notes will forthwith be cancelled.

The ISIN and Common Code numbers are included herein solely for the convenience of the registered owners of the Notes. No representation is made as to the correctness or accuracy of the ISIN or Common Code numbers either as printed on the Notes or as contained herein. Any redemption of the Notes shall not be affected by any defect in or omission of such identification numbers.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240320768005/en/

TotalEnergies Contacts

Media Relations:+33 (0)1 47 44 46 99l presse@totalenergies.com l @TotalEnergiesPR

Investor Relations:+33 (0)1 47 44 46 46 l ir@totalenergies.com

Source: TOTALENERGIES SE

FAQ

What is the redemption date for TotalEnergies SE's (TTE) Undated Non-Call 5.0 Year Deeply Subordinated Fixed Rate Resettable Notes?

The redemption date is April 4, 2024.

What is the redemption price per €100,000 denomination for the Notes?

The redemption price is €101,750.00 per €100,000 denomination.

How much is the aggregate principal amount of the Redeemed Notes?

The aggregate principal amount is €1,500,000,000.

What are the ISIN and Common Code numbers for the Notes?

The ISIN is XS1974787480 and the Common Code is 197478748.

Is the redemption price inclusive of accrued interest?

Yes, the redemption price includes accrued interest and Arrears of Interest.