TotalEnergies SE: Notice of Redemption Dated 22 January 2025 to the holders of the €2,500,000,000 Undated Non-Call 10 Year Deeply Subordinated Fixed Rate Resettable Notes

Rhea-AI Summary

TotalEnergies SE has announced its decision to redeem all outstanding Undated Non-Call 10 Year Deeply Subordinated Fixed Rate Resettable Notes on February 26, 2025. The redemption applies to Notes with an aggregate principal amount of €1,081,581,000.

The redemption price is set at the principal amount, issued in denominations of €100,000, plus any accrued interest and Arrears of Interest. The redemption price amounts to €102,625.00 per €100,000 denomination. The Notes were originally issued on February 26, 2015, under the company's €23,000,000,000 Euro Medium Term Note Programme. All redeemed Notes will be cancelled upon the redemption date.

Positive

• Full redemption of €1.08 billion in Notes demonstrates strong financial position
• Redemption price includes premium over principal amount

Negative

• None.

Insights

Fixed Income Analyst

TotalEnergies SE has announced a significant debt management move with the redemption of its deeply subordinated notes. The company will redeem €1.08 billion of outstanding notes from the original €2.5 billion issuance made in 2015, with the redemption scheduled for February 26, 2025.

The redemption price is set at €102,625 per €100,000 denomination, which includes the principal amount plus accrued interest. This represents a premium above par value, providing noteholders with a return on their investment. Deeply subordinated notes, also known as hybrid bonds, combine characteristics of both debt and equity, typically offering higher yields due to their junior ranking in the capital structure.

This strategic financial move likely reflects TotalEnergies' robust cash position and its proactive approach to liability management. By exercising the redemption option at the first call date, the company is potentially taking advantage of current market conditions to optimize its capital structure. The timing suggests the company may have access to more favorable financing alternatives or sufficient cash flow to reduce its hybrid debt exposure.

For investors, this redemption demonstrates TotalEnergies' financial strength and commitment to managing its debt obligations efficiently. The company's ability to redeem these notes at the first available opportunity could positively impact its credit profile and financial flexibility moving forward.

 

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

TotalEnergies SE (Paris:TTE) (LSE:TTE) (NYSE:TTE):

ISIN: XS1195202822
Common Code: 119520282

NOTICE IS HEREBY GIVEN that, pursuant to Condition 6.2 (Optional Redemption) of the terms and conditions of the Euro 2,500,000,000 Undated Non-Call 10 Year Deeply Subordinated Fixed Rate Resettable Notes (the “Notes”) issued on 26 February 2015 by TotalEnergies SE (formerly TOTAL SE and TOTAL S.A.), incorporated as a European Company (societas europaea) registered in the Republic of France, under RCS 542 051 180 Nanterre) (the “Issuer”) under its €23,000,000,000 Euro Medium Term Note Programme described in the prospectus dated 24 February 2015 (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 €1,081,581,000 (the “Redeemed Notes”) on 26 February 2025 (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 26 February 2024 to, but excluding, the Redemption Date (the “Redemption Price”). The Redemption Price amounts to €102.625,00 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/20250120153347/en/

TotalEnergies SE

Source: TotalEnergies SE

FAQ

When will TotalEnergies (TTE) redeem its Deeply Subordinated Notes?

TotalEnergies will redeem the Notes on February 26, 2025.

What is the total value of TTE Notes being redeemed in 2025?

The total aggregate principal amount of Notes being redeemed is €1,081,581,000.

What is the redemption price for TTE's 2025 Notes redemption?

The redemption price is €102,625.00 per €100,000 denomination, including principal amount plus accrued interest and Arrears of Interest.

Are TotalEnergies' 2025 Note redemptions optional or mandatory?

The redemption is optional, executed under Condition 6.2 (Optional Redemption) of the Notes' terms and conditions.