Daily Mail wraps tender offer for 5¾%, 10% bonds on scaled basis; pricing set

By Susanna Moon

Chicago, Dec. 13 - Daily Mail and General Trust plc said it set the final acceptance amount at £106,102,000 in the modified Dutch auction tender offer for its £349,703,000 of 5¾% bonds due 2018 and its £165 million of 10% bonds due 2021.

The tender offer ended at 11 a.m. ET on Dec. 12 with settlement slated for Dec. 18. The modified Dutch auction tender offer began on Dec. 4.

For the 5¾% bonds, holders had tendered £54,354,000 of bonds under non-competitive tender instructions and £78,786,000 under competitive tender instructions, according to a company press release.

The company said before that it expected to set the series acceptance amount for the 5¾% bonds at £49,702,000 and the purchase spread at the maximum of 205 basis points.

Accordingly, the company expected to accept for purchase the 5¾% bonds tendered under the non-competitive tender instructions, with a scaling factor of 91.583%, and did not expect to accept for purchase any bonds tendered under the competitive tender instructions.

For the 10% bonds, holders had tendered £26.72 million under non-competitive tender instructions and £62.98 million under competitive tender instructions.

The company had said it expected to set the series acceptance amount for the 10% bonds at £56.4 million and the purchase spread at 175 bps.

Accordingly, the company expected to accept for purchase all the non-competitive tender instructions and all the competitive tender instructions with a specified purchase spread of more than the purchase price set with no scaling. The company also accepted bonds tendered under competitive instructions that specified a purchase spread equal to the one set with a scaling factor of 35.62%. The company expected to reject competitive tendered notes that specified a purchase spread less than the one set.

Pricing details

The company will pay 110.1187 for the 5¾% bonds and 135.4997 for the 10% bonds.

Pricing was set at 9 a.m. ET on Dec. 13 using a benchmark security rate plus a spread of 205 bps for the 5¾% bonds and plus 175 bps for the 10% bonds.

After settlement on Dec. 18, £275,001,000 of the 5¾% bonds and £100 million of the 10% bonds will remain outstanding.

HSBC Bank plc (44 20 7992 6237, attn: liability management group, liability.management@hsbcib.com) was the dealer manager. The tender agent was Lucid Issuer Services Ltd. (44 20 7704 0880, attn: David Shilson, dmgt@lucid-is.com).

The offers are intended to help the company manage the refinancing risk and the currency and interest rate profile of its debt, according to a previous company press release.

The issuer is a London-based media company.

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