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Marks and Spencer will buy all 3% tendered notes, some of 4¾% notes
Chicago, June 1 – Marks and Spencer plc announced on Wednesday the results from its capped tender offer for up to £150 million face amount of notes from two series.
The company tweaked the maximum amount to £150.56 million.
For the first series of £300 million of 3% notes due 2023 (ISIN: XS1531151253), the company is buying all of the £100.56 million tendered notes. Pricing, which was determined at 6 a.m. ET on Wednesday, resulted in a purchase price of 99.79 and there will be an accrued interest payment of £20.96.
The second series will be prorated. Noteholders tendered £249,663,000 of the £400 million outstanding 4¾% notes due 2025 (ISIN: XS0863523030). The company will buy £50 million of the notes, applying an 18.415% scaling factor. The purchase price for the notes was calculated as 101.675 and there will be a £59.01 accrued interest payment.
As previously noted, the current coupons on the two series are actually higher, as notated in the announcement. The 2023 notes are carrying a step-up coupon of 4¼%, and the 2025 notes are paying a 6% coupon.
Pricing was determined using the 2¼% U.K. Treasury due September 2023 plus 270 basis points for the 2023 notes and with 5/8% U.K. Treasury due June 2025 plus 370 bps for the 2025 notes.
Tender instructions were due by 11 a.m. ET on May 31. Instructions are irrevocable.
The offer will settle on June 6.
After settlement, there will be £199.44 million of the 2023 notes outstanding and £350 million of the 2025 notes outstanding.
BNP Paribas (+33 1 55 77 78 94, liability.management@bnpparibas.com) and NatWest Markets plc (+44 20 7678 5222, NWMLiabilityManagement@natwestmarkets.com) are the dealer managers.
Kroll Issuer Services Ltd. is the tender agent (+44 20 7704 0880, markandspencer@is.kroll.com, https://deals.is.kroll.com/marksandspencer).
Marks and Spencer is a London-based retailer.
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