Barclays buys back more debt in tenders for dollar notes, four others

By Susanna Moon

Chicago, Aug. 11 – Barclays Bank plc announced the results of its tenders for eight series of notes that began Aug. 3, with one offer for four series of dollar-denominated notes and the other for euro- and sterling-denominated notes.

The issuer will accept for purchase all of the tendered notes, according to two separate announcements.

In the dollar offers, investors had tendered the following amount of notes, with pricing for each $1,000 principal amount set at 11 a.m. ET on Aug. 10 using a reference security plus a fixed spread:

• $113,836,000 of the $503,705,000 outstanding 2.5% senior notes due 2019 with pricing at $1,015.72 using the 0.75% U.S. Treasury note due July 15, 2019 plus 105 basis points for a reference yield of 0.807%;

• $66,659,000 of the $661,748,000 outstanding 6.75% senior notes due 2019 with pricing at $1,128.55 using the 0.75% U.S. Treasury note due July 15, 2019 plus 115 bps for a reference yield of 0.807%;

• $84,612,000 of the $844,403,000 outstanding 5.125% senior notes due 2020 with pricing at $1,100.98 using the 1.125% U.S. Treasury note due July 31, 2021 plus 95 bps for a reference yield of 1.083%; and

• $77.08 million of the $668,823,000 outstanding 3.75% senior notes due 2024 with pricing at $1,071.07 using the 1.625% U.S. Treasury note due May 15, 2026 plus 120 bps for a reference yield of 1.526%.

The issuer also will pay accrued interest to but excluding the settlement date of Aug. 15.

The tender offer ended at 5 p.m. ET on Aug. 10.

The offers were being made as part of the issuer's “ongoing liability management, with the intention of supporting the group’s ongoing transition to a holding company capital and term funding model in line with regulatory requirements,” according to a previous company announcement.

The notes were included in the issuer’s previous offers announced on Jan. 4 and March 1.

Barclays said it plans to continue issuing senior unsecured and subordinated liabilities in all major currency markets, and the offers are not contingent on any capital markets issue.

The dealer manager is Barclays (212 528-7581, 800 438-3242 or us.lm@barclays.com). The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, 800 495 5148 or barclays@lucid-is.com).

Euro, sterling offers

Barclays Bank plc also was tendering for four other note series – three series of euro-denominated notes and one series of sterling-denominated notes.

The offers ended at 11 a.m. ET on Aug. 10, with settlement following on Aug. 15.

The issuer was offering to purchase its €1,242,503,000 of 4.875% notes due 2019 and its €633,741,000 of 2.125% notes due 2021.

Investors had tendered €7.2 million of the 4.875% notes and €49.7 million of the 2.125% notes.

The purchase price per €1,000 par amount is €1,145.98 for the 2019 euro notes and €1,096.21 for the 2021 euro notes, based on a purchase yield of 0%.

Barclays also was tendering for two other series and holders had tendered the following amounts with pricing for each £1,000 principal amount set using a benchmark rate plus a spread as follows:

• €15,775,000 of the €606,350,000 outstanding 2.25% notes due 2024 with pricing at €1,145.29 using the euro interpolated mid-swap rate plus 30 bps for a reference yield of 0.362%; and

• £10,598,000 of the £110,615,000 outstanding 5.75% notes due 2021 with pricing at £1,250.03 using the 1.5% U.K. Treasury stock due 2021 plus 50 bps for a reference yield of 0.656%.

Pricing was set at 9 a.m. ET on Aug. 11 and is intended to reflect a yield to maturity of the notes on the settlement date based on the purchase yield and will equal the value of all remaining payments of principal and interest of the notes through maturity, discounted to the settlement date at a discount rate equal to the purchase yield minus accrued interest.

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

The dealer manager is Barclays (+44 20 3134 8515 or eu.lm@barclays.com). The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or barclays@lucid-is.com).

Barclays is a financial services company based in London.

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