Scentre sets pricing for oversubscribed two-series tender offer

By Marisa Wong

Los Angeles, Nov. 17 – Scentre Group Trust 2, a trust forming part of the stapled entity Scentre Group, announced the early results of its Nov. 2 cash tender offer for up to $300 million total principal amount of notes from two series in a press release late Thursday.

The company also announced pricing under the offer in a press release on Friday.

As of the early tender time at 5 p.m. ET on Nov. 16, holders had tendered the following, with the notes listed in order of acceptance priority and with pricing per $1,000 principal amount:

• $187,944,000 of the $1.5 billion of outstanding subordinated fixed-rate reset notes due 2080 (Cusips: 76025LAB0, Q8053LAB0), which are non-callable for 10 years, all of which is expected to be accepted at $864.57, calculated based on the 3.875% U.S. Treasury note due Aug. 15, 2033 plus a fixed spread of 325 basis points; and

• $201,606,000 of the $1.5 billion of outstanding subordinated fixed-rate reset notes due 2080 (Cusips: 76025LAA2, Q8053LAA2), which are non-callable for six years, $112,045,000 of which is expected to be accepted, with a 51.9% proration factor applied, at $917.97, based on the 4.625% U.S. Treasury note due Oct. 15, 2026 plus a fixed spread of 340 bps.

The early tender consideration includes an early tender premium of $50 per $1,000 principal amount of notes tendered by the early tender time.

Pricing was determined at 9:15 a.m. ET on Nov. 17.

The company will also pay accrued interest to the settlement date, which is expected to be Nov. 21.

The offer will expire at 5 p.m. ET on Dec. 4. However, the company said that no notes tendered after the early deadline will be accepted for purchase, regardless of acceptance priority level.

Tenders may no longer be withdrawn as of the early deadline.

Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955) and Merrill Lynch International (+44 20 7996 5420, 980 387-3907, 888 292-0070 or DG.LM-EMEA@bofa.com) are the dealer managers.

Global Bondholder Services Corp. (212 430-3774, 855 654-2015, 212-430-3774 or contact@gbsc-usa.com) is the tender agent and information agent.

Scentre is a Sydney, Australia-based retail company.

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