Centrica launches tender for up to £400 million of three notes series

By Jennifer Chiou

New York, Nov. 23 - Centrica plc announced the start of an up to £400 million cash tender offer for the following series of its notes:

• £400 million of 5.875% notes due 2012;

• €750 million of 7.125% notes due 2013; and

• £350 million of 5.125% notes due 2014.

The company said it is looking to reduce the amount of debt it has maturing up through 2014.

For each £1,000 or €1,000 principal amount, Centrica said it will determine the payouts using the 5% U.K. treasury Gilt due 2012 plus a spread of 115 basis points for the 5.875% notes; the interpolated mid-swap rate plus 15 bps for the 7.125% notes; and the 5% U.K. treasury Gilt due 2014 plus 100 bps for the 5.125% notes.

Pricing is expected to be set on Dec. 1.

The offer will end at 10 a.m. ET on Nov. 30.

Settlement is slated for Dec. 6.

HSBC Bank plc (44 20 7991 5110/1444) and the Royal Bank of Scotland plc (44 20 7085 3781/5991) are the dealer managers. Lucid Issuer Services Ltd. is the tender agent (44 20 7704 0880).

The company is a gas distributor based in Windsor, England.

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