United Utilities Water starts capped tender offer for 2% notes

By Marisa Wong

Los Angeles, March 15 – United Utilities Water Finance plc is inviting holders of its £450 million outstanding 2% fixed-rate notes due Feb. 14, 2025 with a par call date of Nov. 14, 2024 (ISIN: XS1769818227), guaranteed by parent United Utilities Water Ltd., to tender their notes for purchase for cash.

The issuer is offering to purchase up to £200 million aggregate nominal amount of the notes.

The purchase price will be calculated using the 0.25% U.K. Treasury due Jan. 31, 2025 and a purchase spread of 45 basis points.

The issuer will also pay accrued interest.

Tenders may be subject to proration.

The issuer said it reserves the right to accept less or more than the offer cap or to accept none of the tendered bonds for purchase.

The offer expires at noon ET on March 21.

Pricing will be determined at or around 8 a.m. ET on March 22. Indicative results will be announced prior to the pricing time, and final results will be announced after the pricing time.

Settlement is slated for March 26.

The dealer managers for the offer are Deutsche Bank AG, London Branch (+44 20 7545 8011) and RBC Europe Ltd. (+44 20 7029 7420; liability.management@rbccm.com).

Kroll Issuer Services Ltd. (+44 20 7704 0880; attn.: Owen Morris; unitedutilities@is.kroll.com; https://deals.is.kroll.com/unitedutilities) is the tender agent.

The Warrington, U.K.-based water supply company said the offer is designed to proactively manage its debt maturity profile and to provide liquidity to current bondholders.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.