NatWest prices two sets of tender offers for seven securities

By Marisa Wong

Los Angeles, Aug. 8 – NatWest Group plc and NatWest Markets NV announced pricing for its separate cash tender offers for any and all of the outstanding securities from seven series, according to a Monday press release.

NatWest Group and NatWest Markets launched the offers on Aug. 1.

NatWest Group offers

NatWest Group is offering to purchase the following securities, listed with the purchase price per $1,000 principal amount:

• $1,303,830,000 principal amount outstanding of the original $2.25 billion issue of 6.125% subordinated tier 2 notes due Dec. 15, 2022 (Cusip: 780099CE5) for $1,010.05, based on the 1.625% U.S. Treasury due Dec. 15, 2022 plus 40 basis points;

• $465,426,000 principal amount outstanding of the original $1 billion issue of 6.1% subordinated tier 2 notes due June 10, 2023 (Cusip: 780097AY7) for $1,015.73, based on the 0.25% U.S. Treasury due June 15, 2023 plus 90 bps;

• $1,396,278,000 principal amount outstanding of the original $2 billion issue of 6% subordinated tier 2 notes due Dec. 19, 2023 (Cusip: 780097AZ4) for $1,019.74, based on the 3% U.S. Treasury due June 30, 2024 plus 125 bps;

• $1,241,175,000 principal amount outstanding of the original $2.25 billion issue of 5.125% subordinated tier 2 notes due May 28, 2024 (Cusip: 780099CH8) for $1,007.51, based on the 3% U.S. Treasury due June 30, 2024 plus 145 bps; and

• $2.65 billion issued and outstanding of 3.875% senior notes due Sept. 12, 2023 (Cusip: 780097BD2) for $998.85, based on the 3% U.S. Treasury due June 30, 2024 plus 75 bps;

NatWest Markets offers

Concurrently, NatWest Markets is offering to purchase the following securities, listed with the purchase price per $1,000 principal amount:

• $135,566,000 principal amount outstanding of the original $250 million issue 7.75% subordinated deposit notes, series B, due May 15, 2023 (ISIN: 00077TAA2) for $1,028.32, based on the 0.125% U.S. Treasury due May 15, 20523 plus 75 bps; and

• $150 million issued and outstanding of 7.125% subordinated deposit notes, series B, due Oct 15, 2093 (Cusip: 00077TAB0) for $1,647.06, based on the 2.25% U.S. Treasury due Feb. 15, 2052 plus 120 bps.

Details

Holders of each series of notes will receive accrued interest in addition to the considerations listed above.

Pricing was set at 2 p.m. ET on Aug. 8.

Each offer will expire at 5 p.m. ET on Aug. 8.

Settlement is expected on Aug. 10, or on Aug. 11 for notes tendered under guaranteed delivery procedures.

Tenders may be withdrawn up to the offer’s expiration.

The issuers said the purpose of the offers is to give holders the opportunity to have their securities repurchased while maintaining a responsible approach to managing NatWest’s capital position. Each issuer will continue to meet all of its capital requirements regardless of the outcome of the offers, according to the notice.

Kroll Issuer Services Ltd. (+44 7704 0880 or natwest@is.kroll.com) and NatWest Treasury Markets (+44 7747 455969 or Scott.Forrest@Natwest.com) are the tender agents for the offers.

NatWest Markets (+44 20 7678 5222, 203 897-6166, 866 884-2071 or liabilitymanagement@natwestmarkets.com) is the global arranger and lead dealer manager for each offer.

Dealer managers for the NatWest Group offers are Merrill Lynch International (+44 20 7996 5420, 980 387-3907, 888 292-0070 or DG.LM-EMEA@bofa.com) Morgan Stanley & Co. LLC (+44 20 7677 5040, 212 761-1057, 800 624-1808 or liabilitymanagement@morganstanley.com) and Wells Fargo Securities, LLC (+44 20 3942 9680, 704 410-4756, 866 309-6316 or LiabilityManagement@wellsfargo.com).

Dealer managers for the NatWest Markets offers include BofA Securities Europe SA (+33 1 877 01057, 980 387-3907, 888 292-0070 or DG.LM-EMEA@bofa.com), Morgan Stanley & Co. LLC (+44 20 7677 5040, 212 761-1057, 800 624-1808 or liabilitymanagement@morganstanley.com) and Wells Fargo Securities, LLC (+44 20 3942 9680, 704 410-4756, 866 309-6316 or LiabilityManagement@wellsfargo.com).

NatWest (National Westminster Bank) is a retail and commercial bank based in London.

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