Landsec tenders for £1 billion class A5, A7, A11 notes via new issue

By Susanna Moon

Chicago, March 16 – Land Securities Group plc (Landsec) said wholly owned subsidiary Land Securities plc has begun separate cash tender offers for three series of its bonds with expected maturities ranging from 2025 to 2034.

Landsec also plans to issue new sterling-denominated fixed-rate benchmark bonds due in nine years with a possible add-on of a sub-benchmark sized tap of its £300 million 2.399% A13 2029 notes, according to a company announcement.

Specifically, the company is tendering for the following securities issued by Land Securities Capital Markets plc with pricing to be set at 6 a.m. ET on March 26 using a reference security plus a fixed spread as follows:

• £582,979,000 5.391% class A5 notes due March 2027 with step-up date of March 31, 2025 and pricing to be set using the 5% U.K. Treasury due March 2025 plus 65 basis points;

• £243,274,000 5.396% class A7 notes due July 2032 with step-up date of July 31, 2030 and pricing to be set using the 4.75% U.K. Treasury due December 2030 plus 60 bps; and

• £175,732,000 5.125% class A11 notes due February 2036 with step-up date of Feb. 7, 2034 and pricing to be set using the 4.5% U.K. Treasury due September 2034 plus 60 bps.

The tender offers will end at noon ET on March 23.

Landsec said it is making the offers is to provide liquidity to noteholders and to proactively manage the group’s balance sheet.

Class A5 noteholders who subscribe for new notes by way of a priority option code in addition to tendering in the offer will receive priority in the allocation of new notes.

That option is not being offer to holders of the class A7 notes or the class A11 notes, the release noted.

Settlement is expected to occur on March 29.

Lloyds Bank plc (+44 20 7158 1721 or liability.management@lloydsbanking.com) and Royal Bank of Scotland plc, trading as NatWest Markets, (+44 20 7678 5282 or liabilitymanagement@natwestmarkets.com) are the dealer managers. Citibank, NA, London Branch (+44 20 7508 3867 or Citiexchanges@citi.com) is the tender agent.

Land Securities is a commercial property company based in London.

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