1st May 2019 16:16
LONDON (Alliance News) - Tesco PLC on Wednesday reported expiry of its previously announced tender offer and said that it will back back around GBP336.6 million worth of notes.
Tesco received indicative acceptances for GBP113.6 million of its 6.125% notes due 2022 - with a 50% scaling factor applied - and has announced a purchase price of 112.375%. The 2022 notes have a benchmark security rate of 0.7% and a purchase spread of 85 base percentage points. The purchase yield is 1.6%.
The GBP78.1 million of 5% notes due 2023 have been priced at 111.913% and have a purchase yield of 1.8%. They have a benchmark security rate of 0.8% and a purchase spread of 95 base percentage points.
Acceptances were received for GBP49.8 million of 6% notes due 2029 and priced at 127.890%. These have a benchmark security rate of 1.1%, a purchase spread of 175 base percentage points, and a purchase yield of 2.9%.
The GBP41.2 million of 5.50% notes due 2033, with a purchase price of 125.211%, have a benchmark security rate of 1.4%, a purchase spread of 180 base percentage points, and a purchase yield of 3.2%.
The GBP11.3 million of 4.875% notes due 2042 have a 116.365% purchase price, a purchase yield of 3.8%, and a benchmark security rate of 1.7%, as well as a purchase spread of 210 base percentage points.
Finally, the GBP42.7 million of 5.20% notes due 2057 have been priced at 129.256%, with a benchmark security rate of 1.6%, a purchase spread of 215 base percentage points, and a purchase yield of 3.7% on a semi-annualised basis. All other purchase yield figures are on an annual compounding basis rather than a semi-annualised basis.
For its 5.5% notes due 2019 and 2.125% notes due 2020, no acceptances have been received.
The settlement date for notes accepted for purchase via the offer is May 2. Following the settlement, GBP96.9 million in aggregate nominal amount of the 2019 notes remains outstanding, along with EUR500.0 million of the 2020 notes.
Also outstanding are GBP417.0 million of the 2022 notes, GBP93.0 million of the 2023 notes, GBP47.8 million of the 2029 notes, GBP108.6 million of the 2033 notes, GBP20.3 million of the 2042 notes, and GBP30.1 million of the 20.57 notes.
Shares in Tesco were down 0.2% at 250.25 pence on Wednesday.
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