17th Jul 2006 11:16
Sainsbury(J) PLC17 July 2006 17 July 2006 Proposal to repurchase outstanding £2.8 million irredeemable unsecured loanstock J Sainsbury plc has today announced a proposal to buy back all the outstandingeight per cent £2.8 million irredeemable unsecured loan stock, issued in 1974,at a minimum fixed price of £1.48 for each £1 of nominal stock in issue. On 24 March 2006, Sainsbury's repurchased all £ 1.7 billion of outstandingunsecured notes issued under its £2.5 billion Euro Medium Term Note Programmeand simultaneously raised £2.07 billion of new debt through two securedfinancing structures. As a result of this transaction the company withdrew itssenior, unsecured long-term credit ratings and it is judged to be in the bestinterests of all of the remaining unsecured stockholders for the company tooffer to redeem this outstanding obligation. Sainsbury's is now proposing tobuy back all the outstanding loan stock at a minimum fixed price plus accruedinterest, following an extraordinary meeting of the stockholders to be held on 9August 2006. These proposals will increase the flexibility of the debtstructure and simplify the loan arrangements, whilst at the same time treatingstockholders equitably. There is a mechanism, by which it is possible for the purchase price to exceedthe minimum fixed price and details are contained in the consent solicitationmemorandum being sent to stockholders today. It is anticipated that this transaction will be completed in September 2006. Enquiries: Investor relations Media +44 (0) 20 7695 7162 +44 (0) 20 7695 6127 Lynda Ashton Pip Wood Notes (1) The credit ratings assigned to Sainsbury's are: • Standard & Poor's Rating Service a senior unsecured short-term rating of A-3 and a corporate credit rating of BBB- • Moody's Rating Investor Service a senior unsecured short-term rating of 'Not Prime' and a corporate family rating of Baa3 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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