ITV accepts £275 million of notes for purchase in tender offers

By Angela McDaniels

Tacoma, Wash., June 26 - ITV plc accepted about £275 million principal amount of notes for repurchase in three tender offers and will pay about £310 million for them excluding accrued interest, according to company filings with the London Stock Exchange.

The company received tenders for €137,742,000 of its €187,873,000 10% notes due 2014, £74,858,000 of its £425 million series 2005-1 5 3/8% notes due 2015 and £114,739,000 of its £250 million series 2006-1 6 1/8% notes due 2017.

The company accepted all of the tendered 10% notes and 5 3/8% notes for purchase and £89,387,000 of the 6 1/8% notes.

The offers began June 18 and ended at 11 a.m. ET on June 25.

The purchase price is 117.5 for the 10% notes, 107 for the 5 3/8% notes and 110.5 for the 6 1/8% notes. Holders will also receive accrued interest.

The settlement date is expected to be June 28. Notes purchased under the offer will be canceled.

Following settlement, £50,131,000 of the 10% notes, £78,824,000 of the 5 3/8% notes and £160,613,000 of the 6 1/8% notes will remain outstanding.

The prices for the 5 3/8% notes and 6 1/8% notes were set via a modified Dutch auction. The minimum price was 104.25 for the 5 3/8% notes and 108.25 for the 6 1/8% notes.

The company previously said that the total amount of 5 3/8% notes and 6 1/8% notes accepted would be up to £250 million less the amount of 10% notes accepted converted into pounds sterling.

The 5 3/8% notes and 6 1/8% notes could be tendered on a non-competitive or competitive basis. Notes tendered on a non-competitive basis were deemed to have specified the minimum purchase price.

The minimum tender amount was €50,000 for the 10% notes and £50,000 for the sterling notes.

The company expects the repurchases to reduce its net adjusted financing costs by around £18 million on a full-year basis.

The company has repurchased £937 million of debt since October 2009, according to a June 26 news release.

The dealer managers were Lloyds TSB Bank plc (+44 20 7158 3981 or liability.management@lloydsbanking.com) and Royal Bank of Scotland plc (+44 20 7085 5991 or liability.management@rbs.com). The tender agent was Lucid Issuer Services Ltd. (contact Thomas Choquet at +44 20 7704 0880 or e-mail itv@lucid-is.com).

ITV is a London-based media company.

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