27th Aug 2019 11:03
(Alliance News) - National Grid PLC on Tuesday announced a tender offer for holders of its EUR1.25 billion fixed rate resettable capital securities due 2076 and its intention to issue new capital securities.
The offer is being made by NGG Finance PLC and is guaranteed by National Grid, with the new securities to be guaranteed by National Grid as well.
NGG will purchase the debt instruments for cash at a price determined using a negative 0.25% fixed purchase yield, giving a purchase price of 103.537% assuming a settlement date of September 5.
If 80% of bond holders accept the offer then NGG will have the right to redeem the remaining 20%.
National Grid said the reason for the tender offer and new issue is to proactively manage its hybrid capital.
The offer also gives holders the chance to switch to the new capital securities and is expected to be credit neutral for National Grid. The tender offer is dependent on the new capital securities issue.
Shares in National Grid were down 0.6% at 847.70 pence on Tuesday morning in London.
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