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Wm Morrison takes in tenders for £208.7 million of 6.125%, 2.25% notes
By Susanna Moon
Chicago, Jan. 24 – Wm Morrison Supermarkets plc announced the results of the tender for Safeway Ltd.’s £200 million 6.125% notes due 2018 and for its €579,847,000 2.25% notes due 2020 and £383.7 million 3.5% notes due 2026.
As announced Jan. 17, Wm Morrison was tendering for up to £180 million principal amount of the three series of notes, with priority given to the 2018 notes and the 2020 notes.
Wm Morrison set the acceptance amount at £208,720,971.35 for the 2018 notes and 2020 notes and at zero for the 2026 notes, according to a company notice.
Specifically, the company will accept for purchase £64.95 million of the 2018 notes with no pro rata scaling at a purchase price of 109.408% of par, benchmark rate of 0.163% and purchase yield of 1.066%.
Wm Morrison also will buy €167,105,000 of the 2020 notes with no pro rata scaling at a purchase price of 107.255%, benchmark rate of negative 0.044% and purchase yield of 0.106%.
Pricing was set at 6 a.m. ET on Jan. 24 using the 1.25% U.K. Treasury gilt due July 22, 2018 for the 2018 notes plus a spread of 90 basis points for the 2018 notes.
For the 2020 notes, pricing was set using the 2020 notes interpolated mid-swap rate plus 15 bps.
The company will also pay accrued interest through the settlement date of Jan. 27.
The tender offers ended at 11 a.m. ET on Jan. 23. The offers began Jan. 16.
The company will incur a one-off cost of about £16 million as a result of the transactions.
The dealer managers are Banco Santander, SA (+44 20 7756 6909, +44 20 7756 6646, tommaso.grospietro@santandergcb.com or king.cheung@santandergcb.com) and Royal Bank of Scotland plc (+44 20 7678 5282 or liabilitymanagement@rbs.com). The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or morrisons@lucid-is.com).
Wm Morrison is a Bradford, England-based supermarket group.
© 2015 Prospect News.
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