By Angela McDaniels
Tacoma, Wash., Sept. 18 - Lloyds Banking Group plc subsidiaries Lloyds TSB Bank plc and Bank of Scotland plc began tender offers for 25 series of notes, according to filings with the London Stock Exchange.
The first offer covers seven series of dollar-denominated notes.
Holders will receive $1,023.50 per $1,000 principal amount of Bank of Scotland's $1,253,326,000 of outstanding floating-rate notes due January 2014.
For the remaining notes, the purchase prices will be set at 9 a.m. ET on Sept. 25 by reference to a Treasury security and a fixed spread.
Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be Sept. 28.
The notes eligible for the offer, the reference Treasuries and the spreads are noted in the first table below. The 5.25% covered bonds due February 2017 were issued by Bank of Scotland, and the remaining notes were issued by Lloyd TSB Bank.
The offer will end at noon ET on Sept. 25, and the results are expected to be announced on Sept. 26.
Second offer
In the second offer, the company will repurchase up to the equivalent of £2 billion principal amount of notes denominated in Canadian dollars, euros, pounds sterling or Swiss francs. This offer is being made to holders outside the United States.
The companies may set the amount of each series of notes they will accept for purchase at their discretion.
The purchase prices will be set using a modified Dutch auction procedure. Holders may submit competitive or non-competitive tender instructions.
Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be Sept. 28.
The 18 series of notes covered by the second offer and the pricing information are noted in the second table below. The floating-rate notes due October 2013, 5.625% notes due 23 May 2013 and 3% notes due May 2016 were issued by Bank of Scotland. The remaining notes were issued by Lloyds TSB Bank.
The second offer will end at 11 a.m. ET on Sept. 25. Pricing will be set at 9 a.m. ET on Sept. 26. The results are expected to be announced on Sept. 26.
For the first offer, the dealer managers are Deutsche Bank Securities Inc. (212 250-7527, 855 287-1922 or US_Liability_Strategies_Team@list.db.com), Deutsche Bank AG, London Branch (44 20 7545 8011 or liability.management@db.com), Lloyds Securities Inc. (212 827-3105, 855 400-6511 or liability.management@lloydsbanking.com), Lloyds TSB Bank (44 20 7158 3981 or liability.management@lloydsbanking.com) and UBS Ltd. (888 719-4210, 203 719-4210, 44 207 567 0525 or OL-Liability-Management@ubs.com). The tender agent is Lucid Issuer Services Ltd. (44 20 7704 0880 or lbg@lucid-is.com).
For the second offer, the dealer managers are Deutsche Bank (416 682-8740 or scott.lampard@db.com in Canada), Lloyds TSB Bank and UBS. Lucid is the lead tender agent, and Citibank, NA, London Branch (44 207 508 3867, 905 212-8906 or exchange.gats@citi.com) is the Canadian tender agent.
Tender offer for dollar-denominated notes
| Issue | Amount outstanding | Reference Treasury | Spread
|
| 5.25% covered bonds due February 2017 | $3 billion | 0.625% due Aug. 31, 2017 | 100 bps
|
| 4.375% senior notes due January 2015 | $1,567,158,000 | 0.25% due Sept. 15, 2015 | 120 bps
|
| 4.875% senior notes due January 2016 | $1,255,524,000 | 0.625% due Aug. 31, 2017 | 110 bps
|
| 4.2% senior notes due March 2017 | $1.5 billion | 0.625% due Aug. 31, 2017 | 120 bps
|
| 5.8% senior notes due January 2020 | $1,482,387,000 | 1.625% due Aug. 15, 2022 | 150 bps
|
| 6.375% senior notes due January 2021 | $1,247,032,000 | 1.625% due Aug. 15, 2022 | 150 bps
|
|
|
| Tender offer for notes denominated in other currencies
|
| Issue | Amount outstanding | Minimum price | Maximum price
|
| Floating-rate notes due October 2013 | €1.25 billion | €1,001.10 | NA
|
| 4.57% notes due October 2015 | C$350 million | C$1,036 | C$1,040
|
| 5.28% notes due April 2016 | C$500 million | C$1,062 | C$1,067
|
| Issue | Amount outstanding | Reference benchmark | Maximum spread
|
| 5.625% notes due 23 May 2013 | €1.5 billion | Interpolated mid-swap rate | Zero bps
|
| 3% notes due May 2016 | CHF 250 million | Interpolated mid-swap rate | 57 bps
|
| 2.5% notes due April 2014 | CHF 500 million | Interpolated mid-swap rate | 20 bps
|
| 6.25% notes due April 2014 | €675,856,000 | Interpolated mid-swap rate | 10 bps
|
| 6.375% notes due April 2014 | £492,113,000 | 5% U.K. Treasury Gilt due September 2014 | 130 bps
|
| 4.5% notes due September 2014 | €996,797,000 | Interpolated mid-swap rate | 31 bps
|
| 2.5% notes due March 2015 | CHF 800 million | Interpolated mid-swap rate | 50 bps
|
| 3.375% notes due April 2015 | €590 million | Interpolated mid-swap rate | 67 bps
|
| 3.75% notes due September 2015 | €1,003,578,000 | Interpolated mid-swap rate | 72 bps
|
| 6.375% notes due June 2016 | €1,704,071,000 | Interpolated mid-swap rate | 78 bps
|
| 4.625% notes due February 2017 | €1.5 billion | Interpolated mid-swap rate | 85 bps
|
| 6.75% notes due October 2018 | £225.85 million | 5% U.K. Treasury Gilt due March 2018 | 220 bps
|
| 5.375% notes due September 2019 | €1,230,741,000 | Interpolated mid-swap rate | 114 bps
|
| 7.5% notes due April 2024 | £703,885,000 | 5% U.K. Treasury Gilt due March 2025 | 230 bps
|
| 6.5% notes due September 2040 | £988 million | 4.75% U.K. Treasury Gilt due December 2038 | 225 bps
|
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