Pennon Group tenders for £300 million of perpetual capital securities

By Susanna Moon

Chicago, Sept. 11 – Pennon Group plc is tendering for its £300 million of perpetual capital securities until 11 a.m. ET on Sept. 18.

Pennon is making the offer along with a new issue to fund the tender “to optimize the company's cost of hybrid capital and balance sheet structure,” according to a company announcement.

The purchase price will be 103% of par.

Under the terms, if the company purchases at least 805 of the securities it has the option to redeem all but not some only of the remaining securities at par plus any arrears of returns and any other accrued periodic returns, the release noted.

The offer contains a new financing condition.

The company said it plans to issue new sterling-denominated perpetual capital securities.

Tender Instructions must be submitted for a minimum principal amount of £100,000 and in integrals of £1,000 after that.

Settlement is expected to occur on Sept. 22.

Barclays Bank plc (+44 20 3134 8515 or eu.lm@barclays.com) and Morgan Stanley & Co. International plc (+44 20 7677 7799 or liabilitymanagementeurope@morganstanley.com) are the dealer managers. Lucid Issuer Services Ltd. (+44 20 7704 0880 or pennon@lucid-is.com) is the tender agent.

Pennon is a British water utility and waste management company based in Exeter, England.

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