Virgin Money sets tender offer cap for 8% perpetuals at £450 million

By Marisa Wong

Los Angeles, June 8 – Virgin Money UK plc launched a cash tender offer on June 7 for its outstanding £450 million 8% fixed-rate reset perpetual subordinated contingent convertible notes (ISIN: XS1346644799).

The issuer confirmed on Wednesday that the maximum acceptance amount is £450 million.

Because the maximum acceptance amount is equal to the aggregate principal amount of the notes, the issuer will accept notes for purchase without using a scaling factor.

The issuer is offering to purchase the notes at 101.75 plus accrued interest.

The tender offer is subject to a financing condition.

On Tuesday, the company announced plans to issue new benchmark sterling-denominated fixed-rate reset perpetual subordinated contingent convertible notes.

The maximum acceptance amount under the tender offer was initially expected to be equal to the sum of the amount of the new notes and £100 million.

The tender offer expires at 11 a.m. ET on June 14.

Barclays Bank plc (+44 20 3134 8515, eu.lm@barclays.com), Citigroup Global Markets Ltd. (+44 20 7986 8969, liabilitymanagement.europe@citi.com), Goldman Sachs International (+44 20 7774 4836, Liabilitymanagement.eu@ny.email.gs.com) and Morgan Stanley & Co. International plc (+44 20 7677 5040, liabilitymanagementeurope@morganstanley.com) are dealer managers for the tender offer.

Kroll Issuer Services Ltd. (+44 20 7704 0880, attn.: Owen Morris, virginmoney@is.kroll.com, https://deals.is.kroll.com/virginmoney) is the tender agent.

The bank holding company is based in Leeds, United Kingdom.

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