Daily Mail and General tenders for £100 million of two note series

By Susanna Moon

Chicago, Sept. 22 – Daily Mail and General Trust plc said it began a tender offer for its £100 million outstanding 10% bonds due 2021 and its £275,001,000 outstanding 5¾% bonds due 2018.

The company intends to accept tenders for up to £100 million par amount with the 10% bonds prioritized over the 5¾% bonds, according to company press release.

Pricing will be set at 5 a.m. ET on Sept. 30 using the yield to maturity based on the purchase yield of a reference security plus a purchase spread as follows:

• The £165 million 10% bonds will be priced using the 3.75% U.K. Treasury stock due Sept. 7, 2021 plus 110 basis points; and

• The £349,703,000 5¾% bonds will be based on the 5% U.K. Treasury stock due March 7, 2018 plus 110 bps.

Specifically, the purchase price of each note series will equal (a) the value of all remaining payments of principal and interest on the series through maturity, discounted to the settlement date at a discount rate equal to the purchase yield minus (b) accrued interest, according to a company press release.

The company also will pay accrued interest.

The offer for the 5¾% bonds excludes £74,702,000 nominal amount of bonds held by the company, the release noted.

Holders must tender their bonds under the offer by 11 a.m. ET on Sept. 29, with settlement set for Oct. 1.

Tender instructions must be submitted for a minimum nominal amount of at least £1,000 for the case of the 2018 bonds and £10,000 for the 2021 bonds and may be submitted in integral multiples of the minimum denomination after that.

The dealer managers are Lloyds Bank plc (+44 20 7158 2720, attn: liability management group, email liability.management@lloydsbanking.com) and Royal Bank of Scotland plc (+44 20 7085 8056 / +44 20 7678 9896, attn: liability management group, email liabilitymanagement@rbs.com).

The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, attn: David Shilson, email dmgt@lucid-is.com).

The company made the offers to manage the refinancing risk and the currency and interest rate profile of its debt, according to a press release.

The issuer is a London-based media company.

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