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Prospect News home > News index > List of issuers C > Headlines for Co-operative Group Ltd. > News item
Published on 11/16/2018 in the Prospect News Green Finance Daily, Prospect News High Yield Daily and Prospect News Liability Management Daily.

Co-operative gets tenders for £266.97 million of 5 5/8% notes, puts off pricing of new issue

By Susanna Moon

Chicago, Nov. 16 – Co-operative Group Ltd. said holders had tendered £266,972,000 of its £450 million 5 5/8% notes due 2020 in the offer that ended at noon ET on Nov. 15.

As announced Nov. 9, the issuer was offering to purchase up to £250 million of the notes at a price of 107.25% plus accrued interest.

Co-operative planned to price new sterling-denominated fixed-rate green notes with a roadshow that had been slated to begin Nov. 12.

The tender is contingent on pricing and subscription agreement for the new issue, but may be waived.

Co-operative has decided to postpone pricing of the new issue until next week and so will put off until then whether it will accept the notes tendered in the offer and how much, according to a company update on Friday.

A previously announced, the notes currently pay interest at the step-up amount of 6 7/8% and are guaranteed by Funeral Services Ltd., Co-operative Group Holdings (2011) Ltd., Co-operative Group Food Ltd., Co-operative Foodstores Ltd. and Rochpion Properties (4) LLP.

The tender is being held “to provide liquidity to noteholders and proactively manage the Co-op Group's balance sheet,” according to a previous announcement.

Settlement is expected to occur on Nov. 23.

The dealer managers are Barclays Bank plc (+44 20 3134 8515 pr eu.lm@barclays.com), ING Bank NV, London Branch (+31 20 563 8017 or liability.management@ing.com) and Lloyds Bank Corporate Markets plc (+44 20 7158 1721 / 1726 or liability.management@lloydsbanking.com).

The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or co-op@lucid-is.com).

Co-operative Group is a Manchester, England-based consumer cooperative with a range of retail businesses.


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