Segro accepts tenders for £549.55 million of four series in offers

By Susanna Moon

Chicago, Oct. 4 – Segro plc said it will accept for purchase £549,547,000 of four series of notes in the capped tender offers that ended noon ET on Oct. 3.

The company said on Sept. 25 that it was tendering for up to £450 million principal amount of five note series in separate offers.

The tender breakdown is as follows with pricing set at 6 a.m. ET on Oct. 4 using a reference security plus a fixed spread:

• £220,697,000 of the £300 million 6.75% notes due Nov. 23, 2021 priced using the 3.75% U.K. Treasury due September 2021 plus a spread of 60 basis points for a purchase yield of 1.205% and a purchase price of 122.204;

• £110,876,000 of the £150 million 7% notes due March 14, 2022, priced based on the 4% U.K. Treasury due March 2022 plus 60 bps for a purchase yield of 1.254% and a purchase price of 124.657;

• £142,628,000 of the £225 million 6.75% notes due Feb. 23, 2024, priced based on 2.75% U.K. Treasury due September 2024 plus 67 bps for a purchase yield of 1.673% and a purchase price of 130.538; and

• £75,346,000 of the £177.31 million 6% notes due 2019, priced based on 3.75% U.K. Treasury due September 2019 plus 55 bps for a purchase yield of 0.955% and a purchase price of 109.82.

The company accepted for purchase all of the tendered notes for the four series listed above.

Segro also was tendering for its £250 million of 5.625% notes due 2020 but will not purchase any of those notes in the offer, according to a company update on Wednesday.

Segro previously said it plans to price new sterling-denominated fixed-rate notes in either one or two tranches, which is a condition to the tender offer but may be waived.

Settlement is expected to occur on Oct. 11.

HSBC Bank plc (+44 20 7992 6237 or LM_EMEA@hsbc.com), Lloyds Bank plc (+44 20 7158 1721 or liability.management@lloydsbanking.com) and Banco Santander, SA (+44 20 7756 6909 / 6646, tommaso.grospietro@santandergcb.com or king.cheung@santandergcb.com) are the dealer managers. Royal Bank of Scotland plc, trading as NatWest Markets, is the co-dealer manager. Lucid Issuer Services Ltd. (+44 20 7704 0880 or segro@lucid-is.com) is the tender agent.

Segro is a London-based real estate investment trust specializing in warehouses and light industrial properties.

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