Pearson gets tenders for $385 million 3.75%, $406 million 3.25% notes

By Susanna Moon

Chicago, Aug. 14 – Pearson Funding Four plc obtained tenders for $385,389,000 of its $500 million 3.75% notes due 2022.

Meanwhile, Pearson Funding Five plc received tenders for $406,049,000 of its $500 million 3.25% notes due 2023.

The tally includes $2,662,000 principal amount of the 2022 notes and $225,000 principal amount of the 2023 notes to be tendered under guaranteed delivery procedures, according to a 6-K filing with the Securities and Exchange Commission.

As announced Aug. 4, the purchase price for each $1,000 principal amount will be $1,037.50 for the 3.75% notes and $1,000 for the 3.25% notes.

Holders will also receive accrued interest up to but excluding the settlement date.

The tender offer ended at 5 p.m. ET on Aug. 11.

Settlement is expected to occur on Aug. 15.

The companies plan to use existing cash of Pearson plc and its consolidated subsidiaries as well as drawdowns under Pearson plc's revolving credit facility to fund the offers.

Notes purchased under the offers will be retired.

Citigroup Global Markets Ltd. (+44 20 7986 8969, 800 558-3745, 212 723-6106 or liabilitymanagement.europe@citi.com) and J.P. Morgan Securities LLC (+44 20 7986 8969, 866 834-4666 or 212 834-3424) are the dealer managers. D.F. King & Co., Inc. (800 991 5628, 212 269-5550, pearson@dfking.com or dfking.com/pearson) is the information and tender agent.

Call planned

In a separate notice, Pearson plc previously said it plans to call its $300 million 4.625% senior notes due 2018.

The redemption is contingent on the closing of the “partial disposal and recapitalization” of the issuer's stake in Penguin Random House, which is not expected to close before the end of September, according to the company notice.

Pearson is a multinational publishing and education company based in London.

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