National Grid sets pricing in tender for up to $300 million 6.3% notes

By Jennifer Chio

New York, Sept. 20 - National Grid plc announced the payout in the cash tender offer for up to $300 million principal amount of its $1 billion of outstanding 6.3% notes due 2016.

Pricing for each $1,000 principal amount will be $1,145.06, including an early tender premium of $20.00 per $1,000 of notes tendered by 5 p.m. ET on Sept. 19, the early tender date. As of that time, about $60 million of notes had been tendered.

The payout was calculated using the bid-side yield of the 0.625% U.S. Treasury due August 2017 plus a fixed spread of 115 basis points. The reference yield was 0.66%.

Holders who tender after the early deadline will not receive the early premium.

The company also will pay accrued interest to but not including the settlement date, which is expected to be Oct. 5.

The tender offer will end at 5 p.m. ET on Oct. 4. It launched on Sept. 6.

As reported, the offer is not conditioned on the tender of a minimum principal amount of notes.

If the amount of tendered notes exceeds the offer cap, the company will accept the notes on a prorated basis.

The purpose of the offer is to retire the notes prior to maturity in order to lower the company's interest expense.

Global Bondholder Services Corp. (866 294-2200) is the tender and information agent. Citigroup Global Markets Ltd. (attn.: liability management group, 800 558-3745, collect 212 723-6106 or +44 0 20 7986 8969) is the dealer manager.

The issuer is a London-based utility company.

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