Daily Mail to buy £92.84 million 10% bonds, £56.47 million 5¾% bonds

New York, Sept. 30 – Daily Mail & General Trust plc said it received tenders for £92.84 million of its £100 million of outstanding 10% bonds due 2021.

The company also said it will accept £56,465,000 of its £394,703,000 5¾% bonds due 2018.

The acceptance amounts represent all of the 10% bonds that were tendered. A scaling factor of 0.4 will be applied to tenders of the 5¾% bonds.

At these amounts, the offer has been upsized from the £100 million that the issuer originally said it intended to purchase when it announced the tender on Sept. 22.

Daily Mail & General Trust also announced pricing for the tender. It will pay 139.467% of par for the 10% bonds and 112.639% of par for the 5¾% bonds. Holders will also receive accrued interest.

Settlement is scheduled for Oct. 1.

Following completion of the offer, there will be £7.16 million of the 10% bonds and £218,536,000 of the 5¾% bonds outstanding, excluding £74,702,000 of the 5¾% bonds already held by the company.

As previously announced, pricing was fixed 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 were priced using the 3.75% U.K. Treasury stock due Sept. 7, 2021 plus 110 basis points; and

• The £349,703,000 5¾% bonds were priced using the 5% U.K. Treasury stock due March 7, 2018 plus 110 bps.

Specifically, the purchase price of each note series equals (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.

Holders were required to tender their bonds by 11 a.m. ET on Sept. 29.

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

The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, attn: David Shilson, e-mail 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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