Investec tenders for portion of 9.625% subordinated notes due 2022

By Marisa Wong

Morgantown, W.Va., July 9 – Investec Bank plc announced it is offering to purchase up to £287.5 million of its £575 million 9.625% subordinated notes due 2022.

The offer expires at 11 a.m. ET on July 16.

The company will pay a cash purchase price calculated using the 4% U.K. Treasury due March 2022 as the benchmark security and a purchase spread of 230 basis points. Pricing will be set on the business day after the expiration deadline.

In addition to the purchase price, the company will pay accrued interest for all notes purchased in the offer.

Settlement is slated for July 24.

If the amount tendered exceeds the offer cap, the company will accept notes for purchase on a pro rata basis.

The tender offer is conditioned on the issuance of new notes. The company announced it plans to issue sterling-denominated fixed-rate tier 2 reset callable subordinated notes.

Noteholders wishing to subscribe for the new notes in addition to participating in the tender offer will receive priority in the allocation of the new notes.

Citigroup Global Markets Ltd. (+44 20 7986 8969, attn.: liability management group, liabilitymanagement.europe@citi.com), HSBC Bank plc (+44 20 7992 6237, attn.: liability management group, LM_EMEA@hsbc.com), Investec Bank plc (+44 207 597 4216, transaction_management@investec.co.uk, attn.: transaction management) and J.P. Morgan Securities plc (+44 20 7134 2468, emea_lm@jpmorgan.com, attn.: liability management) are dealer managers for the tender offer, and Lucid Issuer Services Ltd. (+44 207 704 0880, investec@lucid-is.com) is tender agent.

The company said the purpose of the offer, as well as the proposed issue of tier 2 notes, is to allow it to efficiently manage its tier 2 capital, improve its debt profile and optimize its future interest expense.

Proceeds from the new notes will be used for general corporate purposes, including funding the repurchase of notes under the tender offer.

Investec is London-based financial services company, specialist bank and asset manager.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.