Land Securities tenders for £450 million of bonds due 2027, 2030, 2034

By Susanna Moon

Chicago, Sept. 6 – Land Securities Group plc, or Landsec, said wholly owned subsidiary Land Securities plc has begun separate tender offers for three tranches of its bonds due 2027, 2030 and 2034.

The maximum acceptance amount has been set at £450 million.

In addition, Landsec plans to price two new sterling-denominated fixed-rate notes with expected maturities of 20 and 40 years, according to a company announcement.

“The aim of these transactions is to term out part of Landsec’s short term borrowings and use that opportunity to extend the duration of some of its corporate bonds,” the company noted.

Pricing will be set at 6 a.m. ET on Sept. 15 using a reference security plus a fixed spread as follows:

• For the £316,878,000 of 5.376% class A6 notes due September 2029 with step-up date of Sept. 30, 2027, pricing will be set using the 4.25% U.K. Treasury notes due December 2027 plus 63 basis points;

• For the £319,632,000 of 5.396% class A7 notes due July 2032 with step-up date of July 31, 2030, pricing will be set using the 4.75% U.K. Treasury notes due December 2030 plus 63 bps; and

• For the £500 million 5.125% class A11 notes due February 2036 with step-up date of Feb. 7, 2034, pricing will be set using the 4.5% U.K. Treasury notes due September 2034 due 70 bps.

The stated principal amount comprises all notes outstanding, excluding those held by Land Securities plc.

The tender offers will end at 11 a.m. ET on Sept. 14.

“The purpose of the offers is to provide liquidity to noteholders and proactively manage the Land Securities Group’s balance sheet,” the company added.

Noteholders who subscribe for new notes in addition to tendering in an offer will receive priority in the allocation of the new issue, the company said.

The priority will be given for a principal amount of new notes using an allocation factor of 1.4.

Settlement is expected to occur on Sept. 22.

BNP Paribas (+44 20 7595 8668; attn.: liability management group; liability.management@bnpparibas.com) and Citigroup Global Markets Ltd. (+44 20 7986 8969; attn.: liability management group; liabilitymanagement.europe@citi.com) are acting as dealer managers, and Lucid Issuer Services Ltd. (+44 20 7704 0880; attn.: Thomas Choquet / Arlind Bytyqi; landsecurities@lucid-is.com) is acting as tender agent.

Land Securities is a commercial property company based in London.

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