OMV AG Oct 2012

OMV (rated A3 stable by Moodys and A- stable by Fitch) successfully issued a €1.5 billion dual tranche Eurobond consisting of a €750mlion 10 years tranche and a €750mlion 15 years tranche. At the same time OMV also launched tender offers for their €1 billion April 2014 Eurobond as well as their February 2014 and February 2016 Schuldschein loan notes.

The 10-year tranche carries an unprecedentedly low coupon of 2.625% (mid-swaps + 93bps) and the 15-year tranche a coupon of 3.5% (mid-swaps + 135bps). Both issues were significantly oversubscribed in strong market conditions. The issuance of new long-dated Eurobonds in conjunction with the repurchase of shorter dated debt enabled OMV to lock in long-term funding at historically attractive rates whilst further optimising their debt maturity profile.

Canaccord Genuity's role included advising OMV on the pricing and execution strategy for the new bond issue, which enabled them to achieve spreads inside initial "price talk" on both tranches. Canaccord Genuity also advised on the buy-back strategy and timing of both legs of the liability management exercise.

This project represents the fifth time Canaccord Genuity has supported OMV with debt advice since 2010, having previously advised on:

• the refinancing of bank facilities of €750mlion for OMV and €930mlion for OMV Petrom in November 2011
• the issue of a 10-year €500mlion senior bond in October 2011
• the issue of a €750mlion hybrid bond in May 2011
• the restructuring of their €1.5 billion banking facilities in 2009

Canaccord Genuity also advised OMV on a €750mlion rights issue in June 2011. The relationship with OMV goes back to 2004 when Canaccord Genuity advised on a €660mlion equity issue and €550mlion convertible bond in connection with the acquisition of Petrom.