Results of the tender offers

RNS Number : 7403Y

Land Securities Group PLC

07 December 2017

 

7 December 2017

Land Securities Group PLC

("Landsec")

Landsec announces final results of the tender offers

On 29 November 2017, Landsec's wholly-owned subsidiary, Land Securities PLC, launched separate invitations to holders of six series of notes issued by Land Securities Capital Markets PLC to tender their notes for cash. The notes have expected maturities ranging from 2020 to 2034.  Land Securities PLC confirms that it will accept for purchase in cash an aggregate principal amount of notes across six series equal to £147.7m at a cash cost of £197.1m. The final results of the offer are contained in the release issued to the Irish Stock Exchange on Thursday 7 December 2017 (see below).

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

¾    The Group's weighted average maturity of debt will be reduced by 0.5 years.

¾    Group LTV increases by 0.3 percentage points.

¾    Adjusted net assets will be circa £49.3m lower.

¾    The net interest saving on the tendered bonds, will be circa £1.9m for the year to 31 March 2018 and estimated to be £6.0m for the full year to 31 March 2019.

The following release was issued to the Irish Stock Exchange on Thursday 7 December 2017 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.

7 December 2017

LAND SECURITIES PLC ANNOUNCES FINAL RESULTS OF THE TENDER OFFERS

On 29 November 2017, Land Securities PLC (the Offeror) launched separate invitations to holders of Land Securities Capital Markets PLC's (the Company) outstanding (a) 5.425 per cent. Class A3 Notes due March 2022 (ISIN: XS0204778145), (b) 5.391 per cent. Class A4 Notes due February 2026 (ISIN: XS0204778905), (c) 5.376 per cent. Class A6 Notes due September 2029 (ISIN: XS0204780125), (d) 5.396 per cent. Class A7 Notes due July 2032 (ISIN: XS0204780554), (e) 4.875 per cent. Class A10 Notes due September 2025 (ISIN: XS0269067095) and (f) 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 and distribution restrictions. The Offeror announced the indicative results of the Offers earlier today.

Capitalised terms used and not otherwise defined in this announcement have the meanings given in the Tender Offer Memorandum dated 29 November 2017 (the Tender Offer Memorandum).

The Offeror announces that it will accept for purchase in cash an aggregate principal amount of (i) the Class A3 Notes, Class A4 Notes, Class A6 Notes and Class A10 Notes validly tendered pursuant to the Any and All Offer equal to £29,899,000 and (ii) the Class A7 Notes and Class A11 Notes tendered pursuant to the All or Nothing Offer equal to £117,811,000. The Offeror will accept for purchase an aggregate principal amount of the Notes validly tendered pursuant to the Any and All Offer and the All or Nothing Offer equal to £147,710,000. The final results of the Offers are as follows:

Any and All Offer:

Description of the Notes	Coupon	ISIN / Common Code	Aggregate Principal Amount of Notes tendered	Aggregate Principal Amount of Notes accepted for purchase	Purchase Yield (per cent.)	Purchase Price (per cent.)	Accrued Interest (per £1,000)
Class A3 Notes	5.425 per cent.	XS0204778145 / 020477814	£191,000	£191,000	1.132	109.727	£10.73
Class A4 Notes	5.391 per cent.	XS0204778905 / 020477890	£1,475,000	£1,475,000	1.622	122.184	£15.53
Class A6 Notes	5.376 per cent.	XS0204780125 / 020478012	£13,592,000	£13,592,000	1.959	130.334	£10.69
Class A10 Notes	4.875 per cent.	XS0269067095 / 026906709	£14,641,000	£14,641,000	1.525	118.521	£9.83
All or Nothing Offer:
Description of the Notes	Coupon	ISIN / Common Code	Aggregate Principal Amount of Notes tendered	Aggregate Principal Amount of Notes accepted for purchase	Purchase Yield (per cent.)	Purchase Price (per cent.)	Accrued Interest (per £1,000)
Class A7 Notes	5.396 per cent.	XS0204780554 / 020478055	£76,358,000	£76,358,000	2.183	135.317	£19.50
Class A11 Notes	5.125 per cent.	XS0286155071 / 028615507	£41,453,000	£41,453,000	2.379	136.655	£17.55

The Offers remain subject to the conditions and restrictions set out in the Tender Offer Memorandum.

The expected Tender Offer Settlement Date is 11 December 2017.

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 the Dealer Managers and the Tender Agent, the contact details for both of which are set out below.

Banco Santander, S.A. (Telephone: [phone] / 6646; Attention: Liability Management; Email: [e-mail]; and [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 Lucid Issuer Services Limited (Telephone: [phone]; Attention: Thomas Choquet; 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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