Segro launches £150 million tender for 6.25% notes, 5.25%, 6% bonds

By Jennifer Chiou

New York, Nov. 28 - Segro plc announced the launch of its modified Dutch auction tender offer with a target acceptance amount of £150 million for the following securities:

• £150 million of 6.25% notes due 2015;

• £150 million of 5.25% bonds due 2015; and

• £210 million of 6% bonds due 2019.

The company is looking to reduce the cost of its debt through the offer, according to a filing with the London Stock Exchange.

Pricing will be set on Dec. 6 using the 4.75% UK Treasury due September 2015 for the 6.25% notes and the 4.75% bonds and the 4.5% UK Treasury due March 2019 for the 6% bonds. The purchase spread is to be determined, and the maximum spread is 170 bps for the first two series of bonds due 2015 and 195 bps for the 6% bonds.

Segro will pay accrued interest to the settlement date.

Tender instructions are to be delivered by 11 a.m. ET on Dec. 5.

There is a minimum tender amount of £1,000 for the 6.25% notes, £50,000 for the 4.75% bonds and £1,000 for the 6% bonds.

Settlement is expected on Dec. 7.

The dealer managers are HSBC Bank plc (44 20 7992 6237 or liability.management@hsbcib.com), Lloyds TSB Bank plc (44 20 7158 3981 or liability.management@lloydsbanking.com) and Royal Bank of Scotland plc (44 20 7085 5991 or liabilitymanagement@rbs.com).

The tender agent is Lucid Issuer Services Ltd. (attn: Thomas Choquet/David Shilson at 44 20 7704 0880 or segro@lucid-is.com).

Segro is a developer and owner of industrial space and is based in Berkshire, England.

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