RBS begins separate tender offers for dollar, euro and sterling notes

By Susanna Moon

Chicago, Sept. 5 - The Royal Bank of Scotland plc said it began tender offers for several series of notes denominated in dollars, euro and sterling.

Under the first set of offers, the total purchase price for the bank's $750 million of floating-rate notes due 2013 will be fixed at $1,015 per $1,000 principal amount.

Pricing for the other note series will be set using the bid-side yield of a reference security plus a fixed spread, as noted in the table below, at 9:30 a.m. ET on Sept. 14, according to a press release.

Holders may tender notes from Sept. 5 through 12:30 p.m. ET on Sept. 14.

Settlement is slated for Sept. 18.

RBS Securities Inc. (attn: liability management, 877 297-9832 or collect 203 897-4825) is the arranger and lead dealer manager. Morgan Stanley & Co. LLC (attn: liability management, 800 624 1808 or 212 761 1057) and SG Americas Securities, LLC (attn: high-grade syndicate desk, collect 212 278 6964), along with RBS Securities, are the joint dealer managers, and ABN Amro Securities (USA) LLC, Banca IMI Securities and BBVA Securities Inc. are the co-dealer managers. Global Bondholder Services Corp. (866 924-2200 or banks and brokers call collect 212 430-3774) is the tender agent.

Second set of offers

In a separate press release, the bank announced that it also is tendering for up to £2 billion of notes. The purchase prices will be set through a modified Dutch auction procedure.

The second set of offers will end at 11 a.m. ET on Sept. 14.

Pricing for the offers will be set at 8 a.m. ET on Sept. 17, with settlement occurring on Sept. 19.

The bank is tendering for the notes to manage its wholesale funding level and future interest expense with reference to the overall reduction in its balance sheet, while maintaining a prudent approach to liquidity, the release noted.

Royal Bank of Scotland plc (+44 20 7085 8056, attn: liability management group, e-mail: liabilitymanagement@rbs.com) is the global arranger and lead dealer manager. Morgan Stanley & Co. International plc (+44 20 7677 5040, attn.: liability management, email: liabilitymanagementeurope@morganstanley.com) and Societe Generale (+44 20 7676 7579, attn.: liability management, email: liability.management@sgcib.com), along with RBS, are the joint dealer managers, and ABN Amro Bank NV, Banca IMI SpA and Banco Bilbao Vizcaya Argentaria, SA are the co-dealer managers. Lucid Offeror Services Ltd. (+44 0 20 7704 0880, fax +44 20 7067 9098, attn: David Shilson/Yves Theis, email: rbs@lucid-is.com) is the tender agent.

The financial services company is based in Edinburgh.

First set of RBS offers

Senior dollar notes U.S. Treasury security Fixed spread

$1.5 billion 3.4% notes due 2013 0.25% notes due August 2014 95 basis points

$500 million 3.25% notes due 2014 0.25% notes due August 2014 70 bps

$2 billion 4.875% notes due 2014 0.25% notes due August 2014 135 bps

$2 billion 4.875% notes due 2015 0.25% notes due August 2015 135 bps

$2 billion 3.95% notes due 2015 0.25% notes due August 2015 145 bps

$1.5 billion 4.375% notes due 2016 0.625% notes due August 2017 200 bps

$1,498,000,000 5.625% notes due 2020 1.625% notes due August 2022 200 bps

$1.5 billion 6.125% notes due 2021 1.625% notes due August 2022 180 bps

Second set of RBS offers

Sterling/euro notes Minimum price per €1,000 principal amount

€1 billion floating-rate notes due 2013 €1,007

€316,927,000 3.625% notes due 2013 €1,020

Sterling/euro notes Reference benchmark Maximum offer spread

€1.25 million 4.875% notes due 2015 Interpolated Mid-Swap Rate 105 basis points

€1 billion 4.75% notes due 2016 Interpolated Mid-Swap Rate 115 bps

€1,991,000,000 4.875% notes due 2017 Interpolated Mid-Swap Rate 120 bps

£882,777,000 6.375% notes due 2014 5% U.K. Treasury Gilt due 2014 185 bps

£519,943,000 6% notes due 2017 1.75% U.K. Treasury Gilt due 2017 230 bps

£800 million 6.625% notes due 2018 5% U.K. Treasury Gilt due 2018 275 bps

£924,613,000 7.5% notes due 2024 5% U.K. Treasury Gilt due 2025 300 bps

£739,033,000 6.875% notes due 2025 5% U.K. Treasury Gilt due 2025 265 bps

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