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Kingfisher begins tender offer for up to £100 million 5.625% notes
By Angela McDaniels
Tacoma, Wash., Jan. 10 - Kingfisher plc began a tender offer for its £250 million of 5.625% notes due Dec. 15, 2014, according to a company news release.
The company plans to accept up to £100 million of the notes, but it may lower or increase this cap.
The purchase price will be set on Jan. 20 by reference to an annualized sum of a purchase spread and the mid price for the 5% U.K. Treasury gilt due 2014.
The purchase spread will be determined through a modified Dutch auction. It will not be higher than 150 basis points and will otherwise be the highest spread that will allow the company to purchase an amount of notes equal to the cap.
Noteholders will also receive accrued interest.
The tender offer will expire at 11 a.m. ET on Jan. 19. The settlement date is expected to be Jan. 25.
Notes repurchased in the offer will be canceled.
The company said the purpose of the offer is to reduce its debt and improve the return on the cash held on its balance sheet.
The dealer managers are Barclays Bank plc (+44 20 7773 8990 or eu.lm@barcap.com) and UBS Ltd. (+44 20 7567 0525 or Mark-T.Watkins@ubs.com). The tender agent is Deutsche Bank AG, London Branch (+44 20 7547 5000 or xchange.offer@db.com).
Kingfisher is a home improvement retailer based in London.
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