Result of Tender Offer

RNS Number : 1508R

Royal Bank of Scotland Group PLC

24 April 2009

 



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN THE UNITED STATES, OR TO ANY PERSON LOCATED OR RESIDENT IN THE REPUBLIC OF ITALY

(SEE 'OFFER RESTRICTIONS' BELOW)

24 April 2009

RBS FINANCING LIMITED, A SUBSIDIARY OF THE ROYAL BANK OF SCOTLAND GROUP PLC, UPPER TIER 2 AND TIER 1 EXCHANGE OFFERS AND TENDER OFFERS PRICING AND RESULTS

On 26 March 2009, RBS Financing Limited ('RBSF'), a wholly-owned subsidiary of The Royal Bank of Scotland Group plc ('RBSG' and, together with its subsidiaries, the 'Group'), (1) invited holders of certain existing sterling Tier 1 and Upper Tier 2 securities of the Group to offer to exchange any or all of such securities for new senior unsecured notes of The Royal Bank of Scotland plc (the 'Exchange Offers') and (2) invited holders of certain euro and US dollar Tier 1 and Upper Tier 2 securities of the Group to tender any or all of such securities for purchase by RBSF for cash (the 'Tender Offers').

As a result of the Exchange Offers, the Tender Offers and the tender offers in respect of certain other existing securities made in compliance with U.S. tender rules (as announced on 26 March 2009 and the results of which have been separately announced today), the Group expects to realise an aggregate pre-tax gain of approximately £4.5 billion (including gains from associated hedges) which will be accounted for in its results for the six months ending 30 June 2009.

The Exchange Offers

Further to its announcements of 26 March 2009 and 9 April 2009, and in accordance with the Exchange Offer Memorandum dated 26 March 2009 (the 'Exchange Offer Memorandum'), RBSF hereby announces the results of the Exchange Offers to holders of the Exchange Offer Existing Notes.

The results of the Exchange Offers are as follows:

							Early					Nominal
					Amt.	Exchange	Exchange			Early		Amount of
			Capital	Coupon	O/S	Prices	Prices		Exchange	Exchange		Existing Notes
Cur.	Issuer		Qualification	(%)	(£m)	(%)	(%)	ISIN	Ratio	Ratio		Accepted (m)
GBP	NatWest Bank		UT2	7.625	325.0	50.00	55.00	XS0102493508	0.502114	0.552325		163.273
GBP	RBS plc		UT2	7.375	175.0	50.00	55.00	XS0116447599	0.502114	0.552325		79.229
GBP	RBS plc		UT2	5.00	400.0	45.00	50.00	XS0247645160	0.451903	0.502114		209.95
GBP	RBS plc		UT2	6.25	350.0	50.00	55.00	XS0137784426	0.502114	0.552325		232.601
GBP	RBS plc		UT2	6.00	500.0	50.00	55.00	XS0193721544	0.502114	0.552325		362.311
GBP	RBS plc		UT2	5.125	500.0	45.00	50.00	XS0164828385	0.451903	0.502114		321.879
GBP	RBS Capital Trust D		T1	5.6457	400.0	35.00	40.00	XS0277453774	0.351480	0.401691		307.451
GBP	RBS plc		UT2	9.50	200.0	50.00	55.00	XS0045071932	0.502114	0.552325		54.565
Sub-total (m)					£2,850.0							£1,731.259
GBP		RBS plc	UT2	5.50	600.0	45.00	50.00	XS0206633082	0.452411	0.502679		339.985
GBP		RBS plc	UT2	6.20	500.0	45.00	50.00	XS0144810529	0.452411	0.502679		326.165
GBP		NatWest Bank	UT2	7.125	200.0	45.00	50.00	XS0102493680	0.452411	0.502679		73.199
GBP		NatWest Bank	UT2	11.50	200.0	65.00	70.00	XS0041078535/  GB0006210255	0.653483	0.703751		132.140
GBP		RBS plc	UT2	5.625	900.0	45.00	50.00	XS0154144132	0.452411	0.502679		616.553
GBP		RBS plc	UT2	5.625	500.0	45.00	50.00	XS0138939854	0.452411	0.502679		299.473
Sub-total (m)					£2,900.0								£1,787.515
Total (m)					£5,750.0								£3,518.774

All offers to exchange validly submitted to the Exchange and Tender Agent by the Expiration Date have been accepted in full by RBSF.

Exchange Holders whose offer to exchange is accepted by RBSF will receive an aggregate principal amount of the relevant series of New Notes (rounded down to the nearest £1,000) equal to the product of (i) the aggregate principal amount of the relevant series of Exchange Offer Existing Notes validly offered for exchange and (ii) the Exchange Ratio (or the Early Exchange Ratio, as applicable) for such series of Exchange Offer Existing Notes. 

In addition, a cash amount in sterling will be paid by or on behalf of RBSF on the Settlement Date to each relevant Exchange Holder equal to (i) the Accrued Interest Payment and (ii) the Cash Rounding Amount (if applicable) which arises as a result of the application of the relevant Exchange Ratio.

Pricing of the New Notes

The New Notes will be issued by RBS plc pursuant to its £75 billion Euro Medium Term Note Programme and are expected to be rated Aa3 (Moody's) / A+ (S&P) / AA- (Fitch).

The aggregate principal amount of each series of New Notes to be issued by RBS plc pursuant to the Exchange Offers in exchange for the relevant Series of Exchange Offer Existing Notes, and the pricing details thereof, are as follows:

New Notes	Mid-Swap Rate	New Issue Spread	New Issue Coupon	New Issue Price	New Issue Yield	New Issue Amount	Maturity Date	ISIN
2014 Notes	3.225%	+325bps	6.375%	99.579%	6.475%	£882,777,000	29 April  2014	XS0423324887
2024 Notes	4.060%	+350bps	7.500%	99.467%	7.560%	£924,613,000	29 April 2024	XS0423325181

The expected Settlement Date of the Exchange Offers is 29 April 2009.

The Tender Offers

Further to its announcements of 26 March 2009 and 9 April 2009, and in accordance with the Tender Offer Memorandum dated 26 March 2009 (the 'Tender Offer Memorandum'), RBSF hereby announces the results of the Tender Offers to holders of the Tender Offer Existing Notes.

The results of the Tender Offers are as follows:

								Nominal
						Early Tender		Amount of
		Capital	Coupon (% /	Amt. O/S	Purchase Prices	Purchase Prices		Existing Notes
Cur.	Issuer	Qualification	bps)	(m)	(%)	(%)	ISIN	Accepted (m)
USD	RBS Capital Trust B	T1	6.80	750.0	35.00	40.00	XS0159056208	264.142
EUR	RBS Capital Trust A	T1	6.467	1,250.0	38.00	43.00	XS0149161217	859.071
EUR	RBS Capital Trust C	T1	4.243	500.0	35.00	40.00	XS0237530497	333.621
EUR	RBS plc	UT2	5.125	500.0	45.00	50.00	XS0195230635	302.876
EUR	RBS plc	UT2	L+60	1,000.0	45.00	50.00	XS0195231526	757.436
USD Total (m)				$750.0				$264.142
EUR Total (m)				€3,250.0				€2,253.004
EUR Total (equiv.) (m)				€3,828.0				€2,456.1

All offers to tender validly submitted to the Exchange and Tender Agent by the Expiration Date have been accepted in full by RBSF.

The expected Settlement Date of the Tender Offers is 27 April 2009.

General

The Exchange Offers were made on the terms and subject to the conditions set out in the Exchange Offer Memorandum. 

The Tender Offers were made on the terms and subject to the conditions set out in the Tender Offer Memorandum. 

Capitalised terms used and not otherwise defined in this announcement have the meaning given in the Exchange Offer Memorandum or Tender Offer Memorandum, as applicable.

Neither the Exchange Offers nor the Tender Offers were made in the United States or Italy or to any U.S. person or to any person located or resident in Italy and there were also restrictions in other jurisdictions, as more fully described below and in the Exchange Offer Memorandum and Tender Offer Memorandum.

Requests for information in relation to the Exchange Offers or the Tender Offers should be directed to the Joint Dealer Managers in relation to the Exchange Offers and the Tender Offers, being The Royal Bank of Scotland Plc and UBS Limited:

Arranger, Joint Dealer Manager and Global Co-ordinator  The Royal Bank of Scotland plc 135 Bishopsgate London EC2M 3UR	Joint Dealer Manager and Global  Co-ordinator  UBS Limited 1 Finsbury Avenue London EC2M 2PP United Kingdom
Tel: [phone]/8056	Tel: [phone]
Fax: [phone]	Fax:[phone]
Attention: Liability Management Shazia Azim/Andrew Burton	Attention: Liability Management Group Mark T Watkins
email: [e-mail]/[e-mail]	email: [e-mail]

HSBC Bank plc (together with the Joint Dealer Managers, the 'Managers') is also acting as a Global Co-ordinator in the Exchange Offers and the Tender Offers. 

Requests for any documents or materials relating to, the Exchange Offers or the Tender Offers should be directed to the Exchange and Tender Agent (or the Registrar, in the case of the NatWest Subordinated Convertible Notes held outside of the Clearing Systems):

EXCHANGE AND TENDER AGENT

Lucid Issuer Services Limited 436 Essex Road London N1 3QP United Kingdom

Tel: [phone]

Fax: [phone]

Attention:  Sunjeeve Patel, Lee Pellicci, Yves Theis

email: [e-mail]

REGISTRAR

Computershare Investor Services PLC Corporate Actions Bristol BS99 6AH

Tel: [phone]

Fax: [phone]

Attention:  Steve Anderson

email: [e-mail]

DISCLAIMER

This announcement must be read in conjunction with the Exchange Offer Memorandum and the Tender Offer Memorandum. 

No offer or invitation to acquire or exchange any securities is being made pursuant to this announcement. 

The distribution of this announcement, the Exchange Offer Memorandum and the Tender Offer Memorandum in certain jurisdictions may be restricted by law. Persons into whose possession this announcement and/or the Exchange Offer Memorandum and/or the Tender Offer Memorandum comes are required by each of the RBS Entities, the Dealer Managers and the Exchange and Tender Agent to inform themselves about, and to observe, any such restrictions.

OFFER RESTRICTIONS 

United States

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN THE UNITED STATES

These materials are not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia). The Exchange Offers and the Tender Offers were not made, directly or indirectly, in or into the United States, or by use of the mails, or by any means or instrumentality (including, without limitation, e-mail, facsimile transmission, telephone and the internet) of interstate or foreign commerce, or of any facility of a national securities exchange, of the United States and neither the Exchange Offers nor the Tender Offers could be accepted by any such use, means, instrumentality or facility or from within the United States.

These materials do not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The New Notes mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the 'Securities Act'). The New Notes may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act. There will be no public offer of securities in the United States.

Italy

This announcement is not being made, directly or indirectly, in the Republic of Italy (Italy). The Exchange Offers and Exchange Offer Memorandum and the Tender Offers and Tender Offer Memorandum were not submitted to the clearance procedures of the Commissione Nazionale per le Società e la Borsa (CONSOB) pursuant to Italian laws and regulations.  Accordingly, Holders are notified that, to the extent such holders are located or resident in Italy, the Exchange Offers and Tender Offers were not available to them and they were not permitted to offer Existing Notes for exchange pursuant to the Exchange Offers or tender Existing Notes pursuant to the Tender Offers nor may the New Notes be offered, sold or delivered in Italy and, as such, any Exchange Instruction or Tender Instruction received from or on behalf of such persons shall be ineffective and void, and neither the Exchange Offer Memorandum, the Tender Offer Memorandum nor any other documents or materials relating to the Exchange Offers, the Tender Offers, the Existing Notes or the New Notes may be distributed or made available in Italy.

 

END

 

 

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