Motability wraps oversubscribed tenders for two series; pricing set

By Susanna Moon

Chicago, March 7 – Motability Operations Group plc said investors had tendered £243,527,000 of its £450 million 6.625% notes due Dec. 10, 2019 and €367,907,000 of its €550 million 3.25% notes due Nov. 30, 2018.

Motability accepted for purchase £150 million of the 6.625% notes using pro rata scaling of 61.8011% and €160,077,000 of the 3.25% notes using pro rata scaling of 44%, according to a company update on Tuesday.

The company began the separate tender offers on Feb. 27 for the notes guaranteed by Motability Operations Ltd. The tender offers ended at 11 a.m. ET on March 6.

The company was offering to purchase up to £150 million principal amount of the 6.625% notes at a purchase price of 116.942% using a benchmark rate of 0.055% and purchase yield of 0.405%, according to a separate update.

Pricing was set at 6 a.m. ET on March 7 using the 3.75% U.K. Treasury gilt due Sept. 7, 2019 plus 35 basis points.

Motability also was tendering for €160 million principal amount of the 3.25% notes at a purchase price of 106.114 assuming a settlement date of March 14, with pricing based on a purchase yield of negative 0.3%.

Holders also will receive accrued interest.

After settlement on March 14, the outstanding amount will be £300 million principal amount for the 6.625% notes and €389,923,000 principal amount for the 3.25% notes.

The offers are contingent on the issue of new notes. The company previously said it had arranged investor meetings for new 15-year sterling-denominated fixed-rate notes and eight-year euro-denominated fixed-rate notes.

Barclays Bank plc (+44 20 3134 8515 or eu.lm@barclays.com), HSBC Bank plc (+44 20 7992 6237 or LM_EMEA@hsbc.com), Lloyds Bank plc (+44 20 7158 1721 or liability.management@lloydsbanking.com) and Royal Bank of Scotland plc (+44 20 7678 5282 or liabilitymanagement@rbs.com) are the dealer managers. Lucid Issuer Services Ltd. (+ 44 20 7704 0880 or motability@lucid-is.com) is the tender agent.

Motability is a Harlow, England-based government-chartered charity that helps provide qualified disabled individuals (civilian and military) with affordable lease or purchase financing for transportation – primarily modified automobiles or vans but also motorized wheelchairs and scooters.

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