Land Securities Group PLC Landsec announces final results of tender offers (9650Q)

TIDMLAND

RNS Number : 9650Q

Land Securities Group PLC

18 September 2017

18 September 2017

Land Securities Group PLC

("Landsec")

Landsec announces final results of the tender offers

On 6 September 2017, Landsec's wholly-owned subsidiary, Land Securities PLC, launched separate invitations to holders of three tranches of its bonds to tender their notes for cash. Land Securities PLC confirms that it will accept for purchase in cash an aggregate principal amount of notes across two tranches equal to GBP502m at a cash cost of GBP673m. The final results of the offer are contained in the release issued to the Irish Stock Exchange on Friday 15 September 2017 (see below).

In addition, Land Securities Capital Markets PLC confirms it will issue a GBP500m bond with an expected maturity of 20 years, paying a coupon of 2.625% and a GBP500m bond with an expected maturity of 40 years, paying a coupon of 2.75%.

Based upon Landsec's reported debt position and valuation at 31 March 2017, the pro forma impact of the tender offers and new issuance is as follows:

   --     The Group's weighted average maturity of debt will be extended by 5.2 years. 
   --     Group LTV increases by 1.2 percentage points. 
   --     Adjusted diluted net assets will be circa GBP171m lower. 

-- The annual net interest saving on the tendered bonds, taking into account the cost of the new issuance, will be circa GBP8.4m. The annual cost of terming out circa GBP325m of short term debt will be circa GBP6.3m.

The following release was issued to the Irish Stock Exchange on Friday 15 September 2017 by Land Securities PLC:

NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA (the United States) OR INTO ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.

15 September 2017

LAND SECURITIES PLC ANNOUNCES FINAL RESULTS OF THE TENDER OFFERS

On 6 September 2017, Land Securities PLC (the Offeror) launched separate invitations to holders of Land Securities Capital Markets PLC's (the Company) outstanding (a) 5.376 per cent. Class A6 Notes due September 2029 (ISIN: XS0204780125), (b) 5.396 per cent. Class A7 Notes due July 2032 (ISIN: XS0204780554) and (c) 5.125 per cent. Class A11 Notes due February 2036 (ISIN: XS0286155071) (together, the Notes), to tender their Notes for purchase by the Offeror for cash (each an Offer and together, the Offers), subject to applicable offer and distribution restrictions. The Offeror announced the indicative results of the Offers earlier today.

Capitalised terms used and not otherwise defined in this announcement have the meanings given in the tender offer memorandum dated 6 September 2017 (the Tender Offer Memorandum).

The Offeror announces that it will (subject to satisfaction or waiver of the New Issue Condition) accept for purchase in cash an aggregate principal amount of Class A6 Notes and Class A11 Notes validly tendered pursuant to the Offers equal to GBP502,295,000. The Offeror will not be accepting for purchase any of the Class A7 Notes tendered for purchase pursuant to the Offers. The final results of the Offers are as follows:

 
 Description    Coupon    ISIN / Common      Aggregate         Aggregate        Scaling      Purchase     Purchase       Accrued 
 of the Notes                 Code           Principal         Principal        Factor      Yield (per   Price (per   Interest (per 
                                          Amount of Notes   Amount of Notes   (per cent.)     cent.)       cent.)       GBP1,000) 
                                             tendered        accepted for 
                                                               purchase 
                 5.376 
   Class A6       per     XS0204780125 
     Notes       cent.     / 020478012    GBP219,480,000    GBP219,480,000        N/A         1.925       131.317        GBP25.71 
                 5.125 
  Class A11       per     XS0286155071 
     Notes       cent.     / 028615507    GBP282,815,000    GBP282,815,000        N/A         2.430       136.226        GBP6.41 
 

The Offers remain subject to the conditions and restrictions set out in the Tender Offer Memorandum.

Whether the Offeror will purchase any Notes validly tendered in the Offers is subject, without limitation, to the signing by the Company and the respective Managers in respect of the New Issue of a subscription agreement for the purchase of, and subscription for, the New Notes (the New Issue Condition). The New Issue Condition may be waived by the Offeror.

Subject to the satisfaction (or waiver) of the New Issue Condition, the expected Tender Offer Settlement Date is 22 September 2017.

Full details concerning the Offers are set out in the Tender Offer Memorandum.

Questions and requests for assistance in connection with the Offers, may be directed to the Dealer Managers and the Tender Agent, the contact details for both of which are set out below.

BNP Paribas (Telephone: [phone]; Attention: Liability Management Group; Email: [e-mail]) and Citigroup Global Markets Limited (Telephone: [phone]; Attention: Liability Management Group; Email: [e-mail]) are acting as Dealer Managers and Lucid Issuer Services Limited (Telephone: [phone]; Attention: Thomas Choquet / Arlind Bytyqi; Email: [e-mail]) is acting as Tender Agent.

This announcement is released by Land Securities PLC and contains information that qualified or may have qualified as inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), encompassing information relating to the Offers described above. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is made by Martin Greenslade, Director of Land Securities PLC.

DISCLAIMER This announcement must be read in conjunction with the Tender Offer Memorandum. No offer or invitation to acquire or sell any securities is being made pursuant to this announcement. The Dealer Managers do not take responsibility for the contents of this announcement. The distribution of this announcement and the Tender Offer Memorandum in certain jurisdictions may be restricted by law. Persons into whose possession this announcement and/or the Tender Offer Memorandum come into are required by each of the Offeror, the Dealer Managers and the Tender Agent to inform themselves about, and to observe, any such restrictions.

- Ends -

Landsec

Investor Relations

Edward Thacker

T: [phone]

[e-mail]

This information is provided by RNS

The company news service from the London Stock Exchange

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September 18, 2017 02:01 ET (06:01 GMT)