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Taylor Wimpey sets estimated redemption prices for variable-rate debt
By Angela McDaniels
Tacoma, Wash., Nov. 24 - Taylor Wimpey plc gave an initial estimate of the redemption prices it will pay if it redeems any of its £250 million of variable-rate bonds due 2012 and £200 million of variable-rate bonds due 2019.
As previously reported, the company said it might repay a portion of the bonds using proceeds from a £250 million offering of five-year senior notes and £1.05 billion of new credit facilities.
The estimated effective redemption price is 107% of par for the bonds due 2012 and 121% of par for the bonds due 2019.
These amounts are equal to the full voluntary redemption prices for the bonds plus accrued interest, applicable deferred amounts and capitalized PIK amounts, according to a company news release.
Under the terms of the company's financing arrangements, half of the proceeds from any issue of debt securities must be applied toward a mandatory prepayment of debt, including the bonds.
Assuming that the net proceeds of the financing are £1.2 billion and the redemption date is Dec. 14, the company estimated that it will prepay £62.9 million of the £201.5 million of outstanding bonds due 2012 and £50.3 million of the £161.2 million of outstanding variable-rate bonds due 2019.
Once it completes any mandatory prepayments, the company plans to offer to buy back additional bonds on a voluntary basis.
The London-based homebuilder noted that the redemption prices are subject to change, the amount of bonds that may be repurchased will depend on the final amount of net proceeds raised, and there is no guarantee that any prepayment or redemption of the bonds will be made.
Questions may be directed to the company at 44 (0) 7816 517 039.
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