Segro to buy back £112.63 million notes by Dutch auction; pricing set

By Susanna Moon

Chicago, Dec. 6 - Segro plc said it completed the modified Dutch auction tender offer for £150 million of three series of notes at 11 a.m. ET on Dec. 5, with pricing set at 9 a.m. ET on Dec. 6.

The company will accept £112,629,000 of the tendered notes, or all of the non-competitive tenders and none of the competitive tenders, according to a press release, with the breakdown as follows:

• £49,877,000 of the £150 million of 6.25% notes due 2015 under non-competitive tender instructions and £9,261,000 competitive tenders;

• £31,056,000 of the £150 million of 5.25% bonds due 2015 under non-competitive tender instructions and £37,166,000 competitive tenders; and

• £31,696,000 of the £210 million of 6% bonds due 2019 under non-competitive tender instructions and £95,068,000 competitive tenders.

The cash purchase price for the 6.25% notes was set at 111.425% of par, using the 4.75% U.K. Treasury due September 2015 plus a spread of 170 basis points. The reference rate was 0.318% and the purchase yield was 2.0282%.

After settlement on Dec. 7, there will be £100,123,000 of the 6.25% notes outstanding.

Pricing for the 5.25% bonds was set at 108.969% of par using the reference security plus a spread of 170 bps. The reference rate was 0.318% and the purchase yield was 2.018%.

After settlement, there will be £108,213,000 of the bonds outstanding.

Pricing for the 6% bonds was set at 118.632% of par using the 4.75% U.K. Treasury due September 2015 plus a spread of 195 bps. The reference rate was 1.009% and the purchase yield was 2.959%.

After settlement, there will be £177,310,000 of the bonds outstanding.

Segro will pay accrued interest to the settlement date.

Tender instructions needed to be delivered by 11 a.m. ET on Dec. 5. The offer began on Nov. 28.

There was a minimum tender amount of £1,000 for the 6.25% notes, £50,000 for the 4.75% bonds and £1,000 for the 6% bonds.

The dealer managers are HSBC Bank plc (44 20 7992 6237 or liability.management@hsbcib.com), Lloyds TSB Bank plc (44 20 7158 3981 or liability.management@lloydsbanking.com) and Royal Bank of Scotland plc (44 20 7085 5991 or liabilitymanagement@rbs.com).

The tender agent is Lucid Issuer Services Ltd. (attn: Thomas Choquet/David Shilson at 44 20 7704 0880 or segro@lucid-is.com).

The company is looking to reduce the cost of its debt through the offer, according to a previous filing with the London Stock Exchange.

Segro is a developer and owner of industrial space and is based in Berkshire, England.

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