24th Nov 2006 13:49
British Land Co PLC24 November 2006 24 November 2006 BRITISH LAND ANNOUNCES FURTHER DEBENTURE RESTRUCTURING REDUCING GROUP INTEREST COST BY £2 MILLION The British Land Company PLC announces a further restructuring of its existing£25 million 9.375% 2028 Debentures and £42 million 8.875% 2035 Debentures. Theproposed transaction refinances the last of British Land's legacy high coupondebentures replacing them with a new 5.0055% amortising 2035 debenture. Following the restructuring: -British Land's annual interest costs will be reduced by approximately £2 million-British Land's average weighted cost of debt will reduce from 5.46% to 5.41%-British Land will incur a pre-tax exceptional charge of approximately £39 million mainly due to the difference between the redemption value and book value of the legacy high coupon debentures-EPRA adjusted NAV will be reduced by 5 pence per share; there will be virtually no effect on NNNAV Details of the terms of the proposed transaction have been agreed by holdersrepresenting 99.6% of the aggregate principal amount outstanding of the 9.375%2028 and 8.875% 2035 debentures. A Consent Solicitation Document dated 24November 2006 is being sent to holders. Enquiries The British Land Company PLCGraham Roberts, Finance Director Tel.: +44 20 7467 2948Peter Clarke, Executive Officer Tel.: +44 20 7467 2886 The Royal Bank of Scotland plcAndrew Burton, Head of Liability Management Tel.: +44 20 7085 8056Robert St.John, Managing Director Tel.: +44 20 7085 3205 The Bank of New YorkSarah Taylor, Assistant Vice President Tel.: +44 20 7777 5417 Media EnquiriesLaura de Vere, The British Land Company PLC Tel: +44 20 7467 2920 FinsburyGordon Simpson Tel.: +44 20 7521 3801 Notes Throughout the announcement, calculations are based on current market pricingand the financial effects of the Proposed Transaction on British Land are statedon a pro forma basis as though it were completed on 30 September 2006. It is proposed to redeem the 9.375% 2028 Debentures at the semi-annual yield ofthe 6% Government Benchmark due December 2028 plus 0.85% and the 8.875% 2035Debentures at the semi-annual yield of the 4.25% Government Benchmark due March2036 plus 0.90%. Holders will receive new 5.0055% amortising debentures in thesame principal amount as their existing holdings plus a cash payment tocompensate for the value of the mark to market premium on their existingdebentures. Holders will have the opportunity to earn an Early Submission Fee.The Early Submission Fees are the exact equivalent to the Amendment Feesforegone by the holders of the 9.375% 2028 debentures and the 8.875% 2035debentures in their election of Option B in British Land's originalrestructuring of its debentures in August 2006, being 0.68% and 0.82%,respectively. Important Notice The contents of this press release, which have been prepared by and are the soleresponsibility of British Land, have been approved by The Royal Bank of Scotlandplc ("RBS") solely for the purposes of section 21(2)(b) of the FinancialServices and Markets Act 2000. RBS is acting for British Land in connection withthe Proposed Transaction and no one else, and will not be responsible to anyoneother than British Land for providing the protections offered to clients of RBSor for providing advice in relation to the Proposed Transaction. The address ofRBS is 135 Bishopsgate London EC2M 3UR. This press release does not constitute an offer to sell or the solicitation ofan offer to buy securities of British Land. Nothing in this press releaseconstitutes advice on the merits of buying or selling a particular investment orexercising any right conferred by the securities described herein. Any investment decision as to any purchase of securities referred to herein mustbe made solely on the basis of information contained in the final form of theProspectus of The British Land Company PLC and no reliance may be placed on thecompleteness or accuracy of the information contained in this press release. Securities are not suitable for everyone. The value of securities can go down aswell as up. You should not deal in securities unless you understand their natureand the extent of your exposure to risk. You should be satisfied that they aresuitable for you in the light of your circumstances and financial position. Ifyou are in any doubt you should consult an appropriately qualified financialadvisor. RBS is authorised and regulated in the United Kingdom by the Financial ServicesAuthority. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
British Land