Daily Mail to settle tenders for 5¾% bonds, 10% bonds on scaled basis

By Susanna Moon

Chicago, Dec. 13 - Daily Mail and General Trust plc said it set the final acceptance amount at £106,102,000 in the modified Dutch auction tender offer for its £349,703,000 of 5¾% bonds due 2018 and its £165 million of 10% bonds due 2021.

The tender offer ended at 11 a.m. ET on Dec. 12 with settlement slated for Dec. 18. The modified Dutch auction tender offer began on Dec. 4.

For the 5¾% bonds, holders had tendered £54,354,000 of bonds under non-competitive tender instructions and £78,786,000 under competitive tender instructions, according to a company press release.

The company said it expects to set the series acceptance amount for the 5¾% bonds at £49,702,000 and the purchase spread at the maximum of 205 basis points.

Accordingly, the company said it expects to accept for purchase the 5¾% bonds tendered under the non-competitive tender instructions, with a scaling factor of 91.583%, and does not expect to accept for purchase any bonds tendered under the competitive tender instructions.

For the 10% bonds, holders had tendered £26.72 million under non-competitive tender instructions and £62.98 million under competitive tender instructions.

The company said it expects to set the series acceptance amount for the 10% bonds at £56.4 million and the purchase spread at 175 bps.

Accordingly, the company said it expects to accept for purchase all the non-competitive tender instructions and all the competitive tender instructions with a specified purchase spread of more than the purchase price set with no scaling. The company also will accept bonds tendered under competitive instructions that specified a purchase spread equal to the one set with a scaling factor of 35.62%. The company expects to reject competitive tendered notes that specified a purchase spread less than the one set.

Pricing was to be set at 9 a.m. ET on Dec. 13 using a benchmark security rate plus a spread of 205 bps for the 5¾% bonds and plus 230 bps for the 10% bonds.

HSBC Bank plc (44 20 7992 6237, attn: liability management group, liability.management@hsbcib.com) was the dealer manager. The tender agent was Lucid Issuer Services Ltd. (44 20 7704 0880, attn: David Shilson, dmgt@lucid-is.com).

Daily Mail said the outstanding nominal amount will be at least £275 million for the 5¾% bonds and £100 million for the 10% bonds.

The offers are intended to help the company manage the refinancing risk and the currency and interest rate profile of its debt, according to a previous company press release.

The issuer is a London-based media company.

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