Standard Chartered wraps tenders for 5.125%, 4.375% and 7.75% notes

By Susanna Moon

Chicago, June 12 – Standard Chartered plc said investors had tendered £372,509,000 of its £900 million of 5.125% dated subordinated notes due 2034 and £245,687,000 of its £750 million 4.375% notes due 2038.

Meanwhile, Standard Chartered Bank was offering to purchase its £200 million of 7.75% undated subordinated step-up notes, and holders had tendered £99.14 million of those notes, according to a company announcement.

The tender offers ended at 11 a.m. ET on June 11.

Pricing was set at 6 a.m. ET on June 12 using a reference security plus a fixed spread as follows:

• £1,073.55 per £1,000 principal amount for the 5.125% notes, using the 4.5% U.K. Treasury gilt due September 2034 plus 265 bps for a reference rate of 1.772%;

• £1,119.66 per £1,000 principal amount for the 4.375% notes, based on the 4.75% U.K. Treasury gilt due December 2038 plus 170 bps for a reference rate of 1.824%; and

• £11,875.40 per £10,000 for the 7.75% notes, based on the 4% U.K. Treasury gilt due March 2022 plus 140 bps for a reference rate of 0.884%.

The offer for the 7.75% notes excludes £4 million of notes held by a member of Standard Chartered Group.

After the offers, there will be left outstanding £527,491,000 of the 5.125% notes, £504,313,000 of the 4.375% notes and £35.36 million of the 7.75% notes.

The issuer also will pay accrued interest.

Settlement is expected to occur on June 14.

As announced June 4 the offers were being made “to provide liquidity to noteholders and to further optimize Standard Chartered Group’s capital and loss absorbing capacity structure,” according to a previous company announcement.

“Standard Chartered Group’s strong liquidity position enables it to repurchase the notes without any corresponding change to its 2018 funding plan,” the previous release added.

The dealer managers are Lloyds Bank Corporate Markets plc (+44 20 7158 1726 or liability.management@lloydsbanking.com), Standard Chartered Bank (+44 20 7885 5739 or liability_management@sc.com) and UBS Ltd. (+44 20 7568 2133 or ol-liabilitymanagement-eu@ubs.com).

The information and tender agent is D.F. King (+44 20 7920 9700, +852 3953 7230, scb@dfkingltd.com or https://sites.dfkingltd.com/scb).

Standard Chartered is a London-based banking and financial services company with a focus on Asia, Africa and the Middle East.

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