Kingfisher to purchase £149.39 million of 5.625% notes at 107.698

By Marisa Wong

Madison, Wis., Jan. 20 - Kingfisher plc announced the results of the cash tender offer to purchase a portion of its £250 million 5.625% notes due Dec. 15, 2014.

The company decided to accept £149,392,000 of the notes for purchase.

The offer began on Jan. 10 and expired at 11 a.m. ET on Jan. 19. Pricing details were calculated at 10 a.m. ET on Jan. 20.

The purchase price was calculated to be 107.698, which references the annualized sum of a purchase spread and the mid price for the 5% U.K. Treasury gilt due 2014.

The purchase spread is 140 basis points and was determined through a modified Dutch auction. As previously reported, the spread is the highest spread that will allow the company to purchase an amount of notes equal to the cap and could not be higher than 150 bps.

When the offer began, the company planned to accept up to £100 million of the notes, but it said it might lower or increase this cap.

Noteholders will also receive accrued interest equal to 0.632% of par.

The expected settlement date is Jan. 25.

As previously reported, the purpose of the offer is to reduce the company's debt and improve the return on the cash held on its balance sheet.

Barclays Bank plc (+44 20 7773 8990 or eu.lm@barcap.com) and UBS Ltd. (+44 20 7567 0525 or Mark-T.Watkins@ubs.com) were the dealer managers for the offer, and Deutsche Bank AG, London Branch was the tender agent.

Kingfisher is a home improvement retailer based in London.

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