Wales & West Utilities to buy £48.02 million of fixed-to-floaters

New York, March 27 – Wales & West Utilities Ltd. said its £50 million tender offer for Wales & West Utilities Finance plc’s £115 million sub-class B1 fixed-to-floating guaranteed bonds due 2036 was oversubscribed by the expiration date.

The company will buy £48,022,000 of the notes at a price of 104.134% of par plus accrued interest.

Holders submitted £103,486,000 of notes into the offer, and tenders will be pro rated using a scaling factor of 0.468, according to an announcement.

The offer had a cash cap of £50 million.

Following settlement on March 29, £66,978,000 of the notes will remain outstanding.

Wales & West announced the tender on March 19, and the offer ended at 2 p.m. ET on March 26.

Pricing was set at 7 a.m. ET on March 27 using the 1.25% U.K. Gilt due July 22, 2018 plus 50 basis points.

When it launched the offer, Wales & West said it was carrying out the tender to proactively manage the balance sheet of the group.

The notes purchased in the offer will be held pending cancellation on the next interest payment date of Dec. 17, 2018, which is also the first call date.

Banco Santander, SA (+44 20 7756 6909 / 6646) and Lloyds Bank plc (+44 20 7158 1719/1726 or liability.management@lloydsbanking.com) are the dealer managers. Lucid Issuer Services Ltd. (+44 20 7704 0880 or wwu@lucid-is.com) is the tender and information agent.

Wales & West distributes gas to industrial, commercial and domestic consumers in the United Kingdom. The company is based in Newport, Wales.

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