Land Securities’ QAM unit gets tenders for £204.91 million of Sceptre bonds; pricing set

By Susanna Moon

Chicago, April 21 – Land Securities Group plc’s wholly owned subsidiary, QAM Funding LP, said investors had tendered £204,914,650.70 of Sceptre Funding No.1 plc’s 5.253% bonds due February 2027.

The tender offer for the £273,177,575 of outstanding notes remained open until 5 a.m. ET on April 19, with the results announced late on Friday, according to two company notices.

The earlybird purchase price was set at 123.341% of par, using an earlybird purchase yield of 0.946% and an earlybird spread of 47 basis points. The late purchase price is 123.154%, based on a late purchase yield of 0.976% and late spread of 50 bps.

QAM will also pay accrued interest of £11.07 for each £1,000 principal amount.

Pricing was set using the 1.75% U.K. Treasury due September 2022 plus an earlybird spread of 47 bps and a late spread of 50 bps.

The deadline for the earlybird purchase price and the earlybird voting fee was 11 a.m. ET on April 13.

After settlement on April 25, there will be £68,262,924.30 of the notes left outstanding.

QAM also secured the needed votes to amend the Sceptre bonds, as announced earlier Friday.

As announced March 30, the issuer was seeking to modify the bond trust deed’s optional redemption provisions to reduce the minimum notice period for exercising an issuer call to five days from 30 days.

The bondholder meeting was held at 5 a.m. ET on April 21 in London.

Bondholders who delivered solicitation instructions for the extraordinary resolution containing the proposed changes to the trust deed – whether for or against – will receive an earlybird voting fee equal to the difference between the earlybird purchase price and the late purchase price multiplied by the principal amount of bonds subject to the solicitation instructions, the company previously said.

Holders who submitted tender instructions before the early deadline will receive the early purchase price, which includes an amount equivalent to the earlybird voting fee.

The proposal to amend the trust deed was considered by a special committee of the investment association at the request of the issuer. The members of the special committee, who hold about 50.81% of the outstanding bonds, informed the issuer that they found the proposal acceptable and that, subject to client and other approvals, they intended to vote in its favor, according to a separate notice filed with the London Stock Exchange.

To pass, at least two thirds of the votes cast for the proposal needed to be in favor. The quorum required was at least one person representing a simple majority of the outstanding bonds.

HSBC Bank plc (+44 0 20 7992 6237 or LM_EMEA@hsbc.com) is the dealer manager.

Deutsche Bank AG, London Branch. (+44 20 7547 5000 or xchange.offer@db.com) is the tender and tabulation agent and the paying agent.

Land Securities is a commercial property company based in London.

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