Barclays begins tender offers for four dollar notes, four other series

By Susanna Moon

Chicago, Aug. 3 – Barclays Bank plc began tender offers for eight series of notes, with one offer for four series of dollar-denominated notes and another for euro- and sterling-denominated notes.

In the dollar offers, the company is tendering for the following notes with pricing to be set at 11 a.m. ET on Aug. 10 using a reference security plus a fixed spread:

• $503,705,000 of 2.5% senior notes due 2019 using the 0.75% U.S. Treasury note due July 15, 2019 plus 105 basis points;

• $661,748,000 of 6.75% senior notes due 2019 using the 0.75% U.S. Treasury note due July 15, 2019 plus 115 bps;

• $844,403,000 of 5.125% senior notes due 2020 using the 1.125% U.S. Treasury note due July 31, 2021 plus 95 bps; and

• $668,823,000 of 3.75% senior notes due 2024 using the 1.625% U.S. Treasury note due May 15, 2026 plus 120 bps.

The tender offer will run until 5 p.m. ET on Aug. 10, with settlement slated for Aug. 15. Tendered notes may be withdrawn at any time before the offer ends.

The issuer also will pay accrued interest to but excluding the settlement date.

The offers are being made as part of the issuer's “ongoing liability management, with the intention of supporting the group’s ongoing transition to a holding company capital and term funding model in line with regulatory requirements,” according to a company announcement.

The notes were included in the issuer’s previous offers announced on Jan. 4 and March 1.

Barclays said it plans to continue issuing senior unsecured and subordinated liabilities in all major currency markets, and the offers are not contingent on any capital markets issue.

The dealer manager is Barclays (212 528-7581, 800 438-3242 or us.lm@barclays.com). The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, 800 495 5148, Thomas Choquet / Yves Theis or barclays@lucid-is.com).

Euro, sterling offers

Barclays Bank plc also is tendering for three series of euro-denominated notes and one series of sterling-denominated notes, according to a separate announcement.

The issuer is offering to purchase its €1,242,503,000 of 4.875% notes due 2019 and its €633,741,000 of 2.125% notes due 2021 based on a purchase yield of 0%.

The purchase price would be 114.598% for the 2019 euro notes and 109.621% for the 2021 euro notes assuming a settlement date of Aug. 15.

Barclays also is tendering for two other series with pricing to be set using a benchmark rate plus a spread as follows:

• €606,350,000 of 2.25% notes due 2024 using the euro interpolated mid-swap rate plus 30 bps; and

• £110,615,000 of 5.75% notes due 2021 using the 1.5% U.K. Treasury stock due 2021 plus 50 bps.

Pricing will be set at 9 a.m. ET on Aug. 11 and is intended to reflect a yield to maturity of the notes on the settlement date based on the purchase yield and will equal the value of all remaining payments of principal and interest of the notes through maturity, discounted to the settlement date at a discount rate equal to the purchase yield minus accrued interest.

The issuer will also pay accrued interest up to but excluding the settlement date.

The offers will end at 11 a.m. ET on Aug. 10, with settlement following on Aug. 15.

The dealer manager is Barclays (+44 0 20 3134 8515 or eu.lm@barclays.com). The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, fax +44 20 7067 9098, Thomas Choquet / Yves Theis or barclays@lucid-is.com).

Barclays is a financial services company based in London.

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