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Old Mutual prices tender offer to buy £387.72 million of 7.125% notes
By Susanna Moon
Chicago, July 27 - Old Mutual plc said it priced the tender offer for its £500 million of 7.125% notes due 2016 at 6 a.m. ET on Friday.
Old Mutual accepted for purchase £387,715,000 of the 7.125% notes, and the company will pay £1,184.45 for each £1,000 principal amount. Pricing for the offer was set using the 4% U.K. Treasury Gilt due September 2016 plus a spread of 210 basis points. The repurchase yield was 2.488%.
Holders also will receive accrued interest.
The company is paying £459,229,031.75 to purchase the notes, up from the £450 million cap set when the tender offer for three series of notes began July 19. The company also offered to purchase €500 million of fixed-to-floating step-up option B undated subordinated notes and £350 million of perpetual preferred callable securities.
The 7.125% notes had priority acceptance over the other two series of notes.
As the total payment for the 7.125% notes is equal to the repurchase cap, the company will not accept for repurchase any of the other two series of notes, according to a press release.
The purchase price was €932.50 per €1,000 principal amount of the step-up notes and £875 per £1,000 of the perpetual preferreds.
Settlement will occur on Aug. 1.
BNP Paribas (+44 (0)20 7595 8668, attn: liability management group, e-mail: liability.management@bnpparibas.com), Citigroup Global Markets Ltd. (+44 (0)20 7986 8969, attn: liability management group, e-mail: liabilitymanagement.europe@citi.com), RBC Europe Ltd. (+44 (0)20 7029 7486, attn: liability management group, e-mail: liability.management@rbccm.com) and Nedbank Ltd., London Branch (+44 (0)20 7002 3487, attn: liability management group, e-mail: liability.management@nedbankcapital.co.uk) are the dealer managers. Lucid Issuer Services Ltd. (+44 (0)20 7704 0880, attn: Paul Kamminga/Yves Theis, e-mail: oldmutual@lucid-is.com) is the tender agent.
The issuer is a London-based financial services company.
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