Standard Life Aberdeen tenders for £800 million 6.75%, 6.546% notes, seeks to call remainder

By Susanna Moon

Chicago, Oct. 1 – Standard Life Aberdeen plc is holding separate tender offers for its £500 million 6.75% fixed rate perpetual reset subordinated guaranteed bonds and £300 million 6.546% mutual assurance capital securities.

Standard Life also is looking to add amendments to the terms of each series to “facilitate the full and final redemption of the relevant securities by the insertion of a mandatory redemption mechanism,” according to the notice.

Pricing for the offers will be set at 9 a.m. ET on Oct. 23 as follows:

• The 6.75% notes with a first call date of July 12, 2027 will price using the 1.25% U.K. Treasury due July 22, 2027 plus a spread of 50 basis points and has an early voting-only fee of 1%; and

• The 6.546% notes with a first call date of Jan. 6, 2020 will price using the 4.75% U.K. Treasury due March 7, 2020 plus 25 bps and has an early voting-only fee of 1%.

The early response deadline is 11 a.m. ET on Oct. 15. The tender offers will remain open until 11 a.m. ET on Oct. 18.

The offers are being made because the company is required “under the Phoenix share purchase agreement to use commercially reasonable endeavors to complete a tender offer for the Securities,” according to a notice.

In addition to this requirement, the securities are no longer recognized as regulatory capital under the European Union's capital requirements directive (CRD IV) following completion of the guarantor’s sale, the release added.

Bondholder meetings have been set for Oct. 23 in London.

The meeting requires a quorum of two or more persons representing at least three-quarters of each series. To pass, the measures require a majority consisting of not less than three-quarters of the votes cast at each meeting.

The offers have been approved by a special committee holding 40% of the perpetuals and 21.4% of the 6.546% securities.

Barclays Bank plc (+44 20 3134 8515 or eu.lm@barclays.com) and J.P. Morgan Securities plc (+44 20 7134 2468 or emea_lm@jpmorgan.com) are the dealer managers. Lucid Issuer Services Ltd. (+44 20 7704 0880 or sla@lucid-is.com) is the tender agent.

Standard Life Aberdeen is an investment company with headquarters in Edinburgh.

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