Pearson unit tenders for €400 million of 1.875% notes, 1.375% notes

By Susanna Moon

Chicago, Jan. 18 – Pearson plc said subsidiary Pearson Funding Five plc is tendering for up to €400 million of its €500 million 1.875% notes due 2021 and €500 million 1.375% notes due 2025.

Tender instructions must be received by 11 a.m. ET on Jan. 24.

Pearson is making the offers “to optimize the source and maturity of the debt portfolio of the guarantor and its consolidated subsidiaries (the group). This reflects the group's capital allocation priorities, one of which is to maintain an appropriate capital structure,” according to an announcement.

For the 2021 notes, pricing will be set using a purchase yield of 0% for a purchase price of 106.19% of par assuming settlement occurs on Jan. 29.

For the 2025 notes, pricing will be set using the 2025 interpolated mid-swap rate plus 45 basis points.

The 2025 interpolated mid-swap rate will be calculated by means of linear interpolation of the seven-year mid-swap rate and the eight-year mid-swap rate to maturity of the 2025 notes.

Pricing will be set at 6 a.m. ET on Jan. 25.

Holders also will receive accrued interest.

Tender instructions must be submitted for a minimum of €100,000 and in integrals of €1,000 after that.

BNP Paribas (+44 20 7595 8668 or liability.management@bnpparibas.com) and Merrill Lynch International (+44 20 7996 5420 or DG.LM_EMEA@baml.com) are the dealer managers. Lucid Issuer Services Ltd. (+44 20 7704 0880 or pearson@lucid-is.com) is the tender agent.

Pearson is a publishing and education company based in London.

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