Landsec begins one-week tenders for £500 million of six note series

By Susanna Moon

Chicago, Nov. 29 – Land Securities Group plc (Landsec) said that wholly owned subsidiary Land Securities plc is holding separate tender offers for up to a total amount of £500 million of six series of notes due 2020 to 2034 issued by Land Securities Capital Markets plc.

Specifically, the issuer is tendering for all of four series of notes and for “all or nothing” of two more series until noon ET on Dec. 6.

The issuer will buy any tendered notes from four series. In the any and all part of the tender, it will purchase all or none of either or both of the other two tranches but will only do so within the £500 million cap on the total amount of notes purchased across all six tranches.

The offers are “a continuation of Landsec’s disciplined approach to balance sheet management and provides liquidity to investors,” according to a company announcement.

The issuer is offering to purchase all of the following series of notes with pricing to be set using a benchmark security plus a purchase spread:

• £46,636,000 5.425% class A3 notes with step-up date of March 31, 2020 with pricing based on the 4.75% U.K. Treasury note due March 2020 plus 65 basis points;

• £22,291,000 5.391% class A4 notes with step-up date of Feb. 27, 2024 with pricing based on the 2.75% U.K. Treasury note due September 2024 plus 65 bps;

• £97,398,000 5.376% class A6 notes with step-up date of Sept. 30, 2027 with pricing based on the 4.25% U.K. Treasury note due December 2027 plus 70 bps; and

• £28,141,000 4.875% class A10 notes with step-up date of Sept. 29, 2023 with pricing based on the 2.25% U.K. Treasury note due September 2023 plus 65 bps.

In the all or nothing offer, the issuer is tendering for the following note series with pricing to be set using a benchmark security plus a purchase spread:

• £319,632,000 5.396% class A7 notes with step-up date of July 31, 2030 with pricing based on the 4.75% U.K. Treasury note due December 2030 plus 70 bps; and

• £217,185,000 5.125% class A11 notes with step-up date of Feb. 7, 2034 with pricing based on the UKT 4.5% U.K. Treasury note due September 2034 plus 70 bps.

Pricing will be set at 8 a.m. ET on Dec. 7.

Settlement is expected to occur on Dec. 11.

Banco Santander, SA (+44 20 7756 6909/6646 or Tommaso.GrosPietro@santanderGCB.com and King.Cheung@santanderGCB.com) and Royal Bank of Scotland plc, trading as NatWest Markets, (+44 20 7678 5282 or liabilitymanagement@natwestmarkets.com) are the dealer managers. Lucid Issuer Services Ltd. (+44 20 7704 0880 or landsecurities@lucid-is.com) is the tender agent.

Landsec is a commercial property company based in London.

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