Willis announces early tender results for 5.625%, 6.2% and 7% notes

By Susanna Moon

Chicago, Aug. 8 - Willis Group Holdings plc subsidiary Willis NA Inc. announced the early tender results in the offers for any and all of its $350 million of 5.625% senior notes due 2015 and up to a maximum amount of its $600 million of 6.2% senior notes due 2017 and its $300 million of 7% senior notes due 2019.

The company also increased the maximum purchase amount of 6.2% and 7% notes to $525 million, up from $500 million, less the aggregate principal amount of notes purchased in the any and all offer, according to a press release.

As of 5 p.m. ET on Aug. 7, the early tender date, investors had tendered

• $202,192,000, or 57.8% of the 5.625% notes;

• $205,282,000, or 34.2%, of the 6.2% notes; and

• $113.47 million, or 37.8%, of the 7% notes.

The notes are listed in order of priority acceptance level.

Pricing will be set at 3 p.m. ET on Aug. 8 using the yield to maturity of the U.S. Treasury reference note plus a fixed spread as follows:

• 5.625% notes will be based on 0.375% Treasury note due June 30, 2015 plus 80 basis points;

• 6.2% notes based on 1.375% Treasury note due June 30, 2018 plus 110 bps; and

• 7% notes based on 1.375% Treasury note due June 30, 2018 plus 225 bps.

The total purchase price will include a $30.00 early tender payment per $1,000 of notes tendered by the early tender date.

Holders who tender after the early deadline will receive the total payment less the early premium.

The tender offer will continue until 11:59 p.m. ET on Aug. 21.

Holders will also receive accrued interest from the last interest payment date up to but not including the settlement date.

Tendered notes may no longer be withdrawn, as of the early tender date.

The tender offers are conditioned on a financing condition but not on a minimum principal amount of notes being tendered.

The company said on July 25 that the purpose of the tender offers is to refinance a portion of the company's outstanding debt, thereby extending the maturities of its long-term debt and reducing interest debt.

Barclays (800 438-3242 or collect 212 528-7581) and Morgan Stanley & Co. LLC (800 624-1808 or collect 212 761-1057) are the dealer managers. Epiq Systems (646 282-2500 for banks and brokers only or 866 734-9393 for all others) is the tender and information agent.

Willis group is a global risk advisor, insurance and reinsurance broker based in London.

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