Daily Mail accepts tenders for £50 million of 6 3/8% bonds at 93.148

By Marisa Wong

Los Angeles, Nov. 1 – Daily Mail and General Trust plc announced the final results of its Oct. 25 invitation to holders of its outstanding £200 million 6 3/8% bonds due 2027 (ISIN: XS0306155499) to tender their bonds for purchase for cash. The offer expired at noon ET on Oct. 31.

The issuer will accept £50 million of the tendered bonds using a scaling factor of 49%, according to a Tuesday press release. The issuer originally offered to purchase up to £40 million of the bonds.

The company determined that the purchase spread will be 450 basis points, making the purchase price 93.148.

The purchase price was determined under a modified Dutch auction procedure. The benchmark security was the 1¼% U.K. Treasury Gilt due July 22, 2027, and the maximum purchase spread was set at 575 bps. Pricing was determined around 7 a.m. ET on Nov. 1.

The company will also pay accrued interest for bonds accepted for purchase.

Settlement is expected to be on Nov. 3.

After settlement, £150 million of the bonds will remain outstanding.

NatWest Markets plc (+44 20 7678 5222; attn.: liability management; liabilitymanagement@natwestmarkets.com) is the dealer manager for the offer.

Kroll Issuer Services Ltd. (+44 20 7704 0880; attn.: David Shilson; dmgt@is.kroll.com; https://deals.is.kroll.com/dmgt) is the tender agent.

The London-based media company said the purpose of the offer is for it to proactively manage its balance sheet and offer a liquidity event to holders.

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