Published on 9/17/2012 in the Prospect News Investment Grade Daily and Prospect News Liability Management Daily.
RBS wraps tenders for dollar notes, prices offers for remaining series
By Susanna Moon
Chicago, Sept. 17 - Royal Bank of Scotland plc said it completed the tender offer for nine series of its dollar-denominated notes at 12:30 p.m. ET on Sept. 14.
The breakdown of the results is provided in the table below.
Settlement is slated for Sept. 18. The offer began on Sept. 5.
As noted before, the purchase price for the bank's $750 million of floating-rate notes due 2013 was fixed at $1,015 per $1,000 principal amount.
Pricing for the other notes was set using the bid-side yield of a reference Treasury security plus a fixed spread at 9:30 a.m. ET on Sept. 14. The details are noted in the table below.
RBS Securities Inc. (877 297-9832 or 203 897-4825) is the arranger and lead dealer manager. Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) and SG Americas Securities, LLC (212 278-6964), along with RBS Securities, are the joint dealer managers. ABN Amro Securities (USA) LLC, Banca IMI Securities and BBVA Securities Inc. are the co-dealer managers. Global Bondholder Services Corp. (866 924-2200 or banks and brokers call 212 430-3774) is the tender agent.
Second set of offers
The bank also tendered for up to £2 billion of notes denominated in euros and pounds sterling. The purchase prices were set through a modified Dutch auction procedure.
These offers expired at 11 a.m. ET on Sept. 14. Pricing was set at 8 a.m. ET on Sept. 17, and the results of the offer are broken down in the able below. The settlement date will be Sept. 19.
The reference yields and purchase yields, respectively, for the offers are as follows:
• 0.639% and 1.689% for the €1.25 billion 4.875% notes due 2015;
• 0.791% and 1.791% for the €1 billion 4.75% notes due 2016;
• 0.93% and 1.93% for the €1,991,000,000 4.875% notes due 2017;
• 0.248% and 1.748% for the £882,777,000 6.375% notes due 2014;
• 0.725% and 2.795% for the £519,943,000 6% notes due 2017;
• 0.94% and 3.19% for the £800 million 6.625% notes due 2018;
• 2.124% and 5.024% for the £924,613,000 7.5% notes due 2024; and
• 2.124% and 4.594% or the £739,033,000 6.875% notes due 2025.
Royal Bank of Scotland plc (+44 20 7085 8056 or liabilitymanagement@rbs.com) is the global arranger and lead dealer manager. Morgan Stanley & Co. International plc (+44 20 7677 5040 or liabilitymanagementeurope@morganstanley.com) and Societe Generale (+44 20 7676 7579 or liability.management@sgcib.com), along with RBS, are the joint dealer managers. ABN Amro Bank NV, Banca IMI SpA and Banco Bilbao Vizcaya Argentaria, SA are the co-dealer managers. Lucid Offeror Services Ltd. (+44 0 20 7704 0880, attn: David Shilson/Yves Theis, or rbs@lucid-is.com) is the tender agent.
The financial services company is based in Edinburgh.
RBS tender offer for dollar notes
| Dollar notes | Reference Treasury | Fixed spread | Price | Amount accepted
|
| $750 million floating-rate notes due 2013 | NA | NA | $1,015.00 | $257,687,000
|
| $1.5 billion 3.4% notes due 2013 | 0.25% notes due August 2014 | 95 basis points | $1,020.33 | $426,945,000
|
| $500 million 3.25% notes due 2014 | 0.25% notes due August 2014 | 70 bps | $1,030.01 | $243,738,000
|
| $2 billion 4.875% notes due 2014 | 0.25% notes due August 2014 | 135 bps | $1,062.26 | $467,218,000
|
| $2 billion 4.875% notes due 2015 | 0.25% notes due August 2015 | 135 bps | $1,077.63 | $801,208,000
|
| $2 billion 3.95% notes due 2015 | 0.25% notes due August 2015 | 145 bps | $1,063.17 | $841,636,000
|
| $1.5 billion 4.375% notes due 2016 | 0.625% notes due August 2017 | 200 bps | $1,055.98 | $50,551,000
|
| $1,498,000,000 | 5.625% notes due 2020 | 1.625% notes due August 2022 | 200 bps | $1,122.50 | $267,116,000
|
| $1.5 billion 6.125% notes due 2021 | 1.625% notes due August 2022 | 180 bps | $1,178.40 | $614,634,000
|
|
|
| Sterling/euro notes | Minimum price | Purchase price | Amount accepted
|
| €1 billion floating-rate notes due 2013 | €1,007.00 | €1,010 | €381,057,000
|
| €316,927,000 | 3.625% notes due 2013 | €1,020.00 | €1,021 | €129,479,000
|
|
|
| Sterling/euro notes | Reference benchmark | Clearing spread | Purchase price | Amount accepted
|
| €1.25 billion 4.875% notes due 2015 | Interpolated mid-swap rate | 105 bps | €1,086.94 | €198,526,000
|
| €1 billion 4.75% notes due 2016 | Interpolated mid-swap rate | 100 bps | €1,103.84 | €256.75 million
|
| €1,991,000,000 | 4.875% notes due 2017 | Interpolated mid-swap rate | 100 bps | €1,121.28 | €383.93 million
|
| £882,777,000 | 6.375% notes due 2014 | 5% U.K. Treasury Gilt due 2014 | 150 bps | £1,073.09 | £153,881,000
|
| £519,943,000 | 6% notes due 2017 | 1.75% U.K. Gilt due 2017 | 207 bps | £1,137.06 | £82,604,000
|
| £800 million 6.625% notes due 2018 | 5% U.K. Treasury Gilt due 2018 | 225 bps | £1,186.07 | £174,868,000
|
| £924,613,000 | 7.5% notes due 2024 | 5% U.K. Treasury Gilt due 2025 | 290 bps | £1,215.72 | £36,388,000
|
| £739,033,000 | 6.875% notes due 2025 | 5% U.K. Treasury Gilt due 2025 | 247 bps | £1,209.32 | £166,773,000
|
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