Results of the tender offers

RNS Number : 0386J

Land Securities Group PLC

27 March 2018

 

27 March 2018

Land Securities Group PLC

("Landsec")

Landsec announces final results of the tender offers

On 16 March 2018, Landsec's wholly-owned subsidiary, Land Securities PLC, launched separate invitations to holders of three tranches of its bonds to tender their notes for cash. On 26 March 2018, Land Securities PLC confirmed that it will accept for purchase in cash an aggregate principal amount of notes across the three tranches equal to £606.0m at a cash cost of £770.5m. The final results of the offer are contained in the release issued to the Irish Stock Exchange yesterday (see below).

In addition, Land Securities Capital Markets PLC confirmed it will issue a £350m bond with a maturity of 9 years, paying a coupon of 2.375%.

Based upon Landsec's reported pro forma debt position and valuation at 30 September 2017, the pro forma impact of the tender offers and new issuance is as follows:

·      The annual net interest saving on the tendered bonds, taking into account the cost of the new issuance, will be circa £16.3m for the financial year 2018/19.

·      The Group's weighted average maturity of debt will be reduced by 0.9 years.

·      Group LTV increases by 1.1 percentage points.

·      Adjusted diluted net assets will be circa £164.5m lower.

The following release was issued to the Irish Stock Exchange yesterday by Land Securities PLC:

THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR MAY HAVE QUALIFIED AS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE 7(1) OF THE MARKET ABUSE REGULATION (EU) 596/2014.

NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA (the United States) OR INTO ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.

26 March 2018

LAND SECURITIES PLC ANNOUNCES FINAL RESULTS OF TENDER OFFERS

On 16 March 2018, Land Securities PLC (the Offeror) launched separate invitations to holders of Land Securities Capital Markets PLC's (the Company) outstanding (a) 5.391 per cent. Class A5 Notes due March 2027 (ISIN: XS0204779465), (b) 5.396 per cent. Class A7 Notes due July 2032 (ISIN: XS0204780554) and (c) 5.125 per cent. Class A11 Notes due February 2036 (ISIN: XS0286155071) (together, the Notes), to tender their Notes for purchase by the Offeror for cash (each an Offer and together, the Offers), subject to applicable offer restrictions.

Capitalised terms used and not otherwise defined in this announcement have the meanings given in the Tender Offer Memorandum dated 16 March 2018 (the Tender Offer Memorandum).

Further to the pricing of the Offers which occurred at 11:00 a.m. today, the results of the Offers are as follows:

Description of the Notes	Coupon	ISIN / Common Code	Aggregate Principal Amount of Notes tendered	Aggregate Principal Amount of Notes accepted for purchase	Purchase Spread	Purchase Yield (per cent.)	Purchase Price (per cent.)	Accrued Interest (per £1,000)
Class A5 Notes	5.391 per cent.	XS0204779465 / 020477946	£398,390,000	£398,390,000	65 bps	1.914	122.694	£26.66
Class A7 Notes	5.396 per cent.	XS0204780554 / 020478055	£88,238,000	£88,238,000	60 bps	2.242	133.839	£8.50
Class A11 Notes	5.125 per cent.	XS0286155071 / 028615507	£119,341,000	£119,341,000	60 bps	2.319	137.060	£7.08

The Offers remain subject to the conditions and restrictions set out in the Tender Offer Memorandum. Copies of the Tender Offer Memorandum are (subject to the offer and distribution restrictions) available from the Tender Agent as set out below.

In particular, whether the Offeror will purchase any Notes validly tendered in the Offers is subject, without limitation, to (i) the pricing of the issue of the New Notes and (ii) the signing by the Company and the respective Managers in respect of the New Issue of a subscription agreement for the purchase of, and subscription for, the New Notes (the New Issue Condition). The New Issue Condition may be waived by the Offeror.

Subject to the satisfaction (or waiver) of the New Issue Condition, the expected Tender Offer Settlement Date is 29 March 2018.

Full details concerning the Offers are set out in the Tender Offer Memorandum.

Questions and requests for assistance in connection with the Offers, may be directed to either of the Dealer Managers and the Tender Agent, whose contact details are set out below.

Lloyds Bank plc (Telephone: [phone]; Attention: Liability Management Team, Commercial Banking; Email: [e-mail]) and The Royal Bank of Scotland plc (trading as NatWest Markets) (Telephone: [phone]; Attention: Liability Management; Email: [e-mail]) are acting as Dealer Managers and Citibank, N.A., London Branch (Telephone: [phone]; Attention: Exchange Team - Agency and Trust; Email: [e-mail]) is acting as Tender Agent.

This announcement is released by Land Securities PLC and contains information that qualified or may have qualified as inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), encompassing information relating to the Offers described above. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is made by Martin Greenslade, Director of Land Securities PLC.

DISCLAIMER This announcement must be read in conjunction with the Tender Offer Memorandum. No offer or invitation to acquire or sell any securities is being made pursuant to this announcement. The Dealer Managers do not take responsibility for the contents of this announcement. The distribution of this announcement and the Tender Offer Memorandum in certain jurisdictions may be restricted by law.  Persons into whose possession this announcement and/or the Tender Offer Memorandum come into are required by each of the Offeror, the Dealer Managers and the Tender Agent to inform themselves about, and to observe, any such restrictions.

- Ends -

Landsec

Investor Relations

Edward Thacker

T: [phone]

[e-mail]

 

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