23rd Apr 2019 11:00
LONDON (Alliance News) - Grocery Tesco PLC said on Tuesday it has launched tender offers to repurchase debt notes in sterling and euro, replaced by new sterling notes, in order to strengthen its balance sheet.
Tesco Corporate Treasury Services PLC is tendering for its GBP350 million in 5.50% notes due 2019. This issue has GBP96.9 million outstanding.
Also included in the sterling note buyback are the GBP900 million 6.125% notes due 2022 with an outstanding amount of GBP530.6 million and the GBP515 million 5% notes due 2023 with GBP171.1 million outstanding.
The GBP200 million 6% notes due 2029 with GBP97.7 million outstanding, the GBP200 million 5.50% notes due 2033 with GBP149.9 million outstanding, the GBP300 million 4.875% notes due 2042 with GBP31.6 million outstanding, and the GBP500 million 5.20% notes due 2057 has GBP72.8 million outstanding also are included.
In addition, Tesco will tender for its EUR500 million 2.125% notes due 2020 with the entire amount outstanding.
The purchase price for each of the notes will be determined according to market convention.
Tesco Corporate Treasury intends to issue a new series of sterling-denominated fixed rate notes under the group's GBP15 billion euro note programme, and the size of the tender offer will be no larger than the gross proceeds from the new issuance.
Shares in Tesco were up 0.7% at 251.96 pence on Tuesday.
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