RBS wraps tenders for six Australian, U.S. dollar, euro note series

By Susanna Moon

Chicago, Jan. 15 - The Royal Bank of Scotland plc and Royal Bank of Scotland NV will accept all notes tendered in the offers for six series of securities that ended Wednesday, according to a company press release.

The offers for notes held in or through Euroclear or Clearstream, Luxembourg, ended at 5 a.m. ET on Jan. 15. Those for notes held in or through the Austraclear System ended at 1 a.m. ET on Jan. 15. The offers began on Jan. 6.

Settlement for Australian dollar-denominated notes is expected to occur Jan. 20, and settlement for all other notes slated for Jan. 17.

The breakdown for the tendered notes issued by RBS plc is as follows:

• A$31.5 million of the A$49.8 million outstanding subordinated 6.5% fixed-converting-to-floating-rate notes due Feb. 17, 2017, to be redeemed at 94.5;

• A$53.7 million of the A$89.7 million outstanding subordinated floating-rate notes due Feb. 17, 2017, to be redeemed at 94.5;

• €79.75 million of the €102.45 million outstanding subordinated callable step-up notes due 2017, to be redeemed at 98.5; and

• $211.9 million of the $450 million outstanding floating-rate subordinated callable step-up notes due August 2017, to be redeemed at 98.

The offer also included the following series of notes issued by RBS NV, with tender breakdown and both series to be redeemed at 93.25:

• A$449,588,000 of the A$575 million outstanding subordinated 6.5% fixed-converting-to-floating-rate notes due 2018; and

• A$147,611,000 of the A$175 million outstanding subordinated floating-rate notes due 2018.

After settlement, there will remain outstanding A$18.3 million of RBS plc's 6.5% notes, A$36 million of the floaters due 2017, €22.7 million of the step-up notes due 2017, $238.1 million of the dollar step-up notes due 2017, A$125,412,000 of RBS NV's 6.5% notes and A$27,389,000 of the floaters due 2018.

The companies will also pay accrued interest.

Lucid Issuer Services Ltd. (44 20 7704 0880 attn: David Shilson / Paul Kamminga or rbs@lucid-is.com) was the lead tender agent. BTA Institutional Services Australia Ltd. (61 2 9551 5036 attn: Mark Cochrane or mark.cochrane@bnymellon.com) was the Australian tender agent.

Royal Bank of Scotland plc (44 20 7085 8056 attn: liability management group or liabilitymanagement@rbs.com) was the global arranger and lead dealer manager.

The offers will help the companies optimize their overall liability composition and mix and future interest expense while maintaining a prudent approach to liquidity, according to a previous company notice. All of the notes ceased to be recognized as regulatory capital as of Jan. 1 due to the implementation of the Capital Requirements Directive (Directive 2013/36/EU) and the Capital Requirements Regulation (Regulation (EU) No 575/2013).

The financial services company is based in Edinburgh.

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