Bradford & Bingley accepts tenders for CHF 306.98 million covered bonds

By Jennifer Chiou

New York, July 2 – Bradford & Bingley plc said it completed the previously announced 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 ended at 5 a.m. on June 30.

The company received tenders for CHF 197,825,000 of the 2.875% bonds and CHF 109.15 million of the 3.5% bonds.

Bradford & Bingley said it will accept all validly tendered bonds. It will pay 121.498 for the 2.875% bonds and 128.067 for the 3.5% bonds, plus accrued interest in both cases.

In addition, the company received the needed votes to pass an extraordinary resolution to insert a new condition into each of the bond agreements to, among other things, allow for the early redemption of all of the bonds.

Pricing for the offers was 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 include a 1.5% tender premium.

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

Any covered bondholder who did not wish to tender bonds was eligible to receive an amount equal to CHF 75 per CHF 5,000 aggregate principal amount of bonds if voting in favor of the proposal.

The tender offer was not contingent on the consent solicitation.

Settlement is slated for July 7.

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

The tender agent was 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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