Royal Bank of Scotland sets pricing for 5.625%, 6.125% tender offers

By Tali Rackner

Norfolk, Va., Nov. 24 – Royal Bank of Scotland plc set pricing for the cash tender offer for its $1,232,884,000 of outstanding 5.625% senior notes due 2020 and $847,971,000 of outstanding 6.125% senior notes due 2021, according to a filing with the Securities and Exchange Commission.

Pricing for each $1,000 principal amount in the U.S. offer was set at 11 a.m. ET on Tuesday using the yield to the maturity date on the bid-side price of the 1.375% U.S. Treasury note due 2020 plus a fixed spread of 80 basis points for the 5.625% notes and of 85 bps for the 6.125% notes. The total purchase price is $1,140.90 per $1,000 principal amount for the 5.625% notes and $1,172.82 per $1,000 principal amount for the 6.125% notes.

The company also will pay accrued interest to but excluding the settlement date.

The offers ended at 5 p.m. ET on Nov. 24, with settlement following on Nov. 30.

Lucid Issuer Services Ltd. (+44 20 7704 0880, fax +44 20 7067 9098, David Shilson, or rbs@lucid-is.com) is the tender agent. RBS Securities Inc. (USliabilitymanagement@rbs.com or 203 897-2963) is the global arranger and lead dealer manager. Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955) and UBS Ltd. (888 719-4210 or 203 719-4210) are the joint dealer managers.

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