RBS announces final results of tender offers for several note series

By Jennifer Chiou

New York, Jan. 11 - Royal Bank of Scotland plc said it completed its tender offers for several series of outstanding notes.

As previously reported, in the first set of offers, the company was tendering for its $492,313,000 of floating-rate notes due 2013, $1,073,055,000 of 3.4% senior notes due 2013, $252,822,000 of 3.25% senior notes due 2014, $1,532,382,000 of 4.875% senior notes due 2014, $1,198,792,000 of 4.875% senior notes due 2015, $171,801,000 of 5% senior notes due 2015 and $1,158,364,000 of 3.95% senior notes due 2015.

The bank accepted tenders for the following:

• $361.89 million of the floaters due 2013 with a payout of $1,014.50 for each $1,000 principal amount;

• $245,607,000 of the 3.4% notes with a payout of $1,018.53;

• $89,692,000 of the 3.25% notes with a payout of $1,025.68;

• $364,843,000 of the 4.875% notes due 2014 with a payout of $1,064.40;

• $328,087,000 of the 4.875% notes due 2015 with a payout of $1,082.75;

• $119,592,000 of the 5% notes with a payout of $1,091.75; and

• $167,278,000 of the 3.95% notes with a payout of $1,073.48.

Pricing for the six series of fixed-rate notes was fixed at 9:30 a.m. ET on Jan. 10.

The company also will pay accrued interest.

The offers ended at 12:30 p.m. ET on Jan. 10, with settlement slated for Jan. 14.

Global Bondholder Services Corp. was the tender agent. RBS Securities Inc. (attn.: liability management, 877 297-9832 or collect 203 897-4825) was the global arranger and lead dealer manager. J.P. Morgan Securities LLC (866 834-4666, collect 212 834-2494 or email: yankee.team@jpmorgan.com) and RBS Securities Inc. were the joint dealer managers.

Second set of offers

In the second set of offers, RBS was tendering for its €1 billion of 4.75% notes due Jan. 4, 2014, S$110 million of floating-rate notes due March 31, 2014, S$390 million of 2.85% notes due March 31, 2014, €1,051,474,000 of outstanding 4.875% notes due July 15, 2015, €1 billion of 4.25% notes due May 11, 2016, €740.99 million of 4.75% notes due May 18, 2016, €1,607,070,000 of 4.875% notes due Jan. 20, 2017, £728,896,000 of 6.375% notes due April 29, 2014, £437,339,000 of 6% notes due May 17, 2017 and CHF 350 million of 2.75% notes due Oct. 8, 2015.

The total purchase price was fixed for the following three series of notes:

• €1,041.00 per €1,000 principal amount of the 4.75% notes due 2014;

• S$253,000 per S$250,000 principal amount of the floaters due March 31, 2014; and

• S$254,500 per S$250,000 principal amount of the 2.85% notes.

The company accepted tenders for €206,063,000 of the 4.75% notes, S$38.5 million of the floaters and S$154.5 million of the 2.85% notes.

For the remaining notes, pricing was set using the reference rate plus a fixed spread. Pricing and accepted tender amounts are as follows:

• Interpolated mid-swap rate plus 50 bps for the 4.875% notes due 2015 for a payment of €1,093.71 per €1,000 principal amount and an accepted purchase amount of €183,501,000;

• Interpolated mid-swap rate plus 35 bps for the 4.25% notes for a payment of €1,104.87 per €1,000 principal amount and an accepted purchase amount of €161,297,000;

• Interpolated mid-swap rate plus 60 bps for the 4.75% notes due 2016 for a payment of €1,112.90 per €1,000 principal amount and an accepted purchase amount of €150,505,000;

• Interpolated mid-swap rate plus 80 bps for the 4.875% notes due 2017 for a payment of €1,127.17 per €1,000 principal amount and an accepted purchase amount of €92,743,000;

• 5% U.K. Treasury Gilt due 2014 plus 85 bps for the 6.375% notes for a payment of £1,065.23 per £1,000 principal amount and an accepted purchase amount of £115,521,000;

• 1.75% U.K. Treasury Gilt due 2017 plus 145 bps for the 6% notes for a payment of £1,150.56 per £1,000 principal amount and an accepted purchase amount of £31,907,000; and

• Interpolated mid-swap rate plus 50 bps for the 2.75% notes for a payment of CHF 5,283.74 per CHF 1,000 principal amount and an accepted purchase amount of CHF 85,525,000.

The offers ended at 11 a.m. ET on Jan 10. Pricing was set at 4 a.m. ET on Jan. 11.

Lucid Issuer Services Ltd. was the tender agent (+44 20 7704 0880, attn.: David Shilson/Sunjeeve Patel, email: rbs@lucid-is.com). Royal Bank of Scotland plc (+44 20 7085 8056, attn.: liability management group, email: liabilitymanagement@rbs.com) was the global arranger and lead dealer manager. J.P. Morgan Securities plc (+44 20 7134 3414, attn.: liability management group, email: emea_lm@jpmorgan.com) and RBS were the joint dealer managers.

The company previously said it was tendering for U.S. dollar, euro, pounds sterling, Singapore dollar and Swiss franc senior notes "to optimize its overall liability composition and mix and future interest expense with reference to the overall reduction in its balance sheet, while maintaining a prudent approach to liquidity."

The financial services company is based in Edinburgh.

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