22nd Sep 2020 14:15
(Alliance News) - NatWest Group PLC on Tuesday said USD1.96 billion worth of notes were tendered under its offer to repurchase some outstanding dollar-denominated notes.
The FTSE 100 lender said USD1.97 billion in principal amount of notes were tendered under the offer, which was announced last week, and a further USD9.4 million worth were tendered using the guaranteed delivery procedures.
Last week Monday, NatWest announced an offer to buy-back four of its classes of notes. These included its 6.425% non-cumulative trust preferred securities, of which the principal amount issued was USD650.0 million and the principal amount outstanding is USD393.6 million, and its 7.648% USD perpetual regulatory tier one securities, series 1 - for which the principal amount issued was USD1.20 billion and the outstanding amount is USD761.7 million.
The other two notes included in the offer were its 6.125% subordinated tier 2 notes due 2022 - amount issued and outstanding USD2.25 billion - and its 6.100% subordinated tier 2 notes due 2023, for which the amount issued and outstanding is USD1.00 billion.
The 6.425% non-cumulative trust preferred securities were purchased at USD1,556.87 per USD1,000 in principal amount, based on a reference yield of 0.666% and fixed spread over 30-year US Treasuries of 105 basis points. The 7.648% USD perpetual regulatory tier one securities were bought for USD1,547.47 based on the same reference yield and a 140 point spread.
The 6.125% subordinated tier 2 notes were bought for USD1,098.79 per USD1,000, based on a reference yield of 0.137% and a spread over US Treasury two-year notes of 145 points. The 6.100% subordinated tier 2 notes were priced at USD1,116.01, based on a reference yield of 0.152% and a spread of 155 basis points over US Treasury three-year notes.
The offers expired on Monday and the settlement date is expected to be Thursday.
NatWest shares were trading 3.2% higher at 96.26 pence each on Tuesday afternoon in London.
By Ife Taiwo; [email protected]
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