Co-operative Group tenders for up to £300 million of 5 5/8% notes

By Sarah Lizee

Olympia, Wash., May 9 – Co-operative Group Ltd. launched a tender offer for up to £300 million of its £450 million 5 5/8% notes due 2020, according to a notice.

The tender offer will expire at noon ET on May 14. The offer was launched on May 7.

The purchase price is 106% of par. Holders will also receive accrued interest. Settlement is expected on May 17.

If the amount of tendered notes is greater than the maximum consideration amount, the company intends to accept those notes for purchase on a pro rata basis.

The company said it launched the tender offer to provide liquidity to noteholders and proactively manage its balance sheet.

The tender offer is conditioned on Co-operative Group pricing new sterling-denominated fixed-rate notes. However, this conditioned may be waived. On Thursday, the company launched an upsized offering of £300 million of five-year senior sustainability bullet notes to yield 5 1/8%.

Barclays Bank plc (+44 20 3134 8515; eu.lm@barclays.com), ING Bank NV, London Branch (+ 44 20 7767 6784; liability.management@ing.com) and Lloyds Bank Corporate Markets plc (+44 20 7158 1719 / 1726; liability.management@lloydsbanking.com) are joint lead managers for the tender offer.

Lucid Issuer Services Ltd. (+44 20 7704 0880; attention: Thomas Choquet; co-op@lucid-is.com) is the tender agent.

Co-operative Group is focused on diverse family of retail businesses, including food retail and wholesale, electrical retail, financial services, insurance services, legal services and funeral care.

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