Cadent tenders for up to £400 million of instruments due 2021

By Sarah Lizee

Olympia, Wash., Oct. 1 – Cadent Finance plc is tendering for up to £400 million of its £650 million fixed-rate instruments due 2021, according to an announcement.

Pricing will be set using the 3.75% U.K. Treasury Gilt due 2021 plus a spread of 20 basis points.

Holders will also receive accrued interest.

The purpose of the offer is to manage the company’s debt profile.

The offer is subject to a financing condition. The company announced on Tuesday that it plans to offer new sterling-denominated guaranteed bonds under its £6 billion euro medium-term note program. The program is guaranteed by Cadent Gas Ltd.

Holders who wish to subscribe for new notes in addition to tendering notes for purchase may receive preference in the allocation of the new notes.

In the event that the amount of notes tendered exceeds the cap, tender instructions will be accepted on a pro rata basis.

The offer will expire at 11 a.m. ET on Oct. 8.

Pricing will be set at 5 a.m. ET on Oct. 9.

Settlement is expected for Oct. 11.

Barclays Bank plc (+44 20 3134 8515 or eu.lm@barclays.com), Morgan Stanley & Co. International plc (+44 20 7677 5040 or liabilitymanagementeurope@morganstanley.com) and SMBC Nikko Capital Markets Ltd. (+44 20 3527 7545 or lm.emea@smbcnikko-cm.com) are the dealer managers.

Lucid Issuer Services Ltd. (+44 20 7704 0880 or cadent@lucid-is.com) is the tender agent.

Notes purchased in the offer will be cancelled and not resold.

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