Bradford & Bingley launches tender for two covered bonds series

By Jennifer Chiou

New York, June 10 – Bradford & Bingley plc said it began tender offers for its CHF 200 million of outstanding 2.875% series 8 covered bonds due October 2031 and its CHF 111,695,000 of 3.5% series 12 covered bonds due July 2027.

The offers will end at 5 a.m. on June 30.

In addition, the company is asking holders of each series of bonds to vote on an extraordinary resolution to insert a new condition into each of the bond agreements to allow for the early redemption of all of the bonds.

Pricing for the offers will be set using the 2031 interpolated mid-swap rate minus a spread of 8 bps for the series 8 bonds and the 2027 interpolated mid-swap rate minus a spread of 15 bps. The purchase prices will include a 1.5% tender premium.

According to a filing with the London Stock Exchange, the goal of the offers is to reduce the maturity profile of the company's liabilities.

Any covered bondholder who does not wish to tender the bonds may be eligible to receive an amount equal to CHF 75 per CHF 5,000 aggregate principal amount of bonds if they vote in favor of the proposal.

The tender offer is not contingent on the consent solicitation.

The company will hold meetings on July 2, and pricing will be set on the same date.

Settlement is slated for July 7.

The dealer manager is BNP Paribas (44 20 7595 8668 or liability.management@bnpparibas.com).

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

Bradford & Bingley is a Bingley, England-based bank.

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