Land Securities Group PLC Results of the tender offers (7403Y)

TIDMLAND

RNS Number : 7403Y

Land Securities Group PLC

07 December 2017

7 December 2017

Land Securities Group PLC

("Landsec")

Landsec announces final results of the tender offers

On 29 November 2017, Landsec's wholly-owned subsidiary, Land Securities PLC, launched separate invitations to holders of six series of notes issued by Land Securities Capital Markets PLC to tender their notes for cash. The notes have expected maturities ranging from 2020 to 2034. Land Securities PLC confirms that it will accept for purchase in cash an aggregate principal amount of notes across six series equal to GBP147.7m at a cash cost of GBP197.1m. The final results of the offer are contained in the release issued to the Irish Stock Exchange on Thursday 7 December 2017 (see below).

Based upon Landsec's pro forma reported debt position and valuation at 30 September 2017, the pro forma impact of the tender offers and new issuance is as follows:

   3/4     The Group's weighted average maturity of debt will be reduced by 0.5 years. 
   3/4     Group LTV increases by 0.3 percentage points. 
   3/4     Adjusted net assets will be circa GBP49.3m lower. 

3/4 The net interest saving on the tendered bonds, will be circa GBP1.9m for the year to 31 March 2018 and estimated to be GBP6.0m for the full year to 31 March 2019.

The following release was issued to the Irish Stock Exchange on Thursday 7 December 2017 by Land Securities PLC:

THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR MAY HAVE QUALIFIED AS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE 7(1) OF THE MARKET ABUSE REGULATION (EU) 596/2014.

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.

7 December 2017

LAND SECURITIES PLC ANNOUNCES FINAL RESULTS OF THE TENDER OFFERS

On 29 November 2017, Land Securities PLC (the Offeror) launched separate invitations to holders of Land Securities Capital Markets PLC's (the Company) outstanding (a) 5.425 per cent. Class A3 Notes due March 2022 (ISIN: XS0204778145), (b) 5.391 per cent. Class A4 Notes due February 2026 (ISIN: XS0204778905), (c) 5.376 per cent. Class A6 Notes due September 2029 (ISIN: XS0204780125), (d) 5.396 per cent. Class A7 Notes due July 2032 (ISIN: XS0204780554), (e) 4.875 per cent. Class A10 Notes due September 2025 (ISIN: XS0269067095) and (f) 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 29 November 2017 (the Tender Offer Memorandum).

The Offeror announces that it will accept for purchase in cash an aggregate principal amount of (i) the Class A3 Notes, Class A4 Notes, Class A6 Notes and Class A10 Notes validly tendered pursuant to the Any and All Offer equal to GBP29,899,000 and (ii) the Class A7 Notes and Class A11 Notes tendered pursuant to the All or Nothing Offer equal to GBP117,811,000. The Offeror will accept for purchase an aggregate principal amount of the Notes validly tendered pursuant to the Any and All Offer and the All or Nothing Offer equal to GBP147,710,000. The final results of the Offers are as follows:

Any and All Offer:

 
                 Coupon                                        Aggregate 
                                              Aggregate        Principal 
                                              Principal        Amount of       Purchase     Purchase       Accrued 
 Description                ISIN / Common     Amount of      Notes accepted   Yield (per   Price (per   Interest (per 
 of the Notes                   Code        Notes tendered    for purchase      cent.)       cent.)       GBP1,000) 
-------------  ----------  --------------  ---------------  ---------------  -----------  -----------  --------------- 
   Class A3     5.425 per   XS0204778145 
     Notes        cent.      / 020477814      GBP191,000       GBP191,000       1.132       109.727        GBP10.73 
   Class A4     5.391 per   XS0204778905 
     Notes        cent.      / 020477890     GBP1,475,000     GBP1,475,000      1.622       122.184        GBP15.53 
   Class A6     5.376 per   XS0204780125 
     Notes        cent.      / 020478012    GBP13,592,000    GBP13,592,000      1.959       130.334        GBP10.69 
  Class A10     4.875 per   XS0269067095 
     Notes        cent.      / 026906709    GBP14,641,000    GBP14,641,000      1.525       118.521        GBP9.83 
 
 All or Nothing Offer: 
                 Coupon                                        Aggregate                                   Accrued 
                                              Aggregate        Principal                                Interest (per 
                                              Principal        Amount of       Purchase     Purchase      GBP1,000) 
 Description                ISIN / Common     Amount of      Notes accepted   Yield (per   Price (per 
 of the Notes                   Code        Notes tendered    for purchase      cent.)       cent.) 
-------------  ----------  --------------  ---------------  ---------------  -----------  -----------  --------------- 
   Class A7     5.396 per   XS0204780554 
     Notes        cent.      / 020478055    GBP76,358,000    GBP76,358,000      2.183       135.317        GBP19.50 
  Class A11     5.125 per   XS0286155071 
     Notes        cent.      / 028615507    GBP41,453,000    GBP41,453,000      2.379       136.655        GBP17.55 
 

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

The expected Tender Offer Settlement Date is 11 December 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.

Banco Santander, S.A. (Telephone: [phone] / 6646; Attention: Liability Management; Email: [e-mail]; and [e-mail]) and The Royal Bank of Scotland plc (trading as NatWest Markets) (Telephone: [phone]; Attention: Liability Management; Email: [e-mail]) are acting as Dealer Managers and Lucid Issuer Services Limited (Telephone: [phone]; Attention: Thomas Choquet; 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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December 07, 2017 10:55 ET (15:55 GMT)