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Northumbrian Water prices oversubscribed tender offer for 6% bonds
By Angela McDaniels
Tacoma, Wash., Oct. 10 – Northumbrian Water Ltd. subsidiary Northumbrian Water Finance plc set pricing in its tender offer for up to £120,002,000 of its £300 million 6% bonds due Oct. 11, 2017 and said the offer is oversubscribed.
The tender offer ended at 11 a.m. ET on Oct. 7.
The purchase price is £1,055.17 per £1,000 principal amount of notes. It was set on Oct. 10 using the 1% U.K. Treasury due Sept. 7, 2017 plus 25 basis points. The reference yield was 0.193%.
The company also will pay accrued interest up to but excluding the settlement date, which is expected to be Oct. 12.
Because the offer is oversubscribed, if the company decides to accept any bonds for purchase, it will accept them on a pro rata basis using a proration factor of 59.45%, according to a filing with the London Stock Exchange.
When the offer began on Sept. 29, the company said that it planned to issue new sterling-denominated bonds due 2026 and that the tender offer would be contingent on the new issue.
The purpose of the offer and the new issue is to extend the company’s debt maturity profile and to raise funding for the company’s general corporate purposes.
The dealer managers are Barclays Bank plc (+44 20 3134 8515 or eu.lm@barclays.com), Lloyds Bank plc (+44 20 7158 1721 or liability.management@lloydsbanking.com), RBC Europe Ltd. (+44 20 7029 7420 or liability.management@rbccm.com) and Royal Bank of Scotland plc (+44 20 7678 5282 or liabilitymanagement@rbs.com). The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or nwg@lucid-is.com).
Northumbrian Water provides water utility services and is based in Durham, England.
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