Barclays accepts $2.04 billion, £1.13 billion of securities so far

By Angela McDaniels

Tacoma, Wash., Dec. 20 - Barclays Bank plc accepted for purchase $2,038,947,000 and £1,126,312,000 of capital securities tendered by the early tender deadline, 5 p.m. ET on Dec. 19.

As previously reported, the company began a tender offer for six series of capital securities on Dec. 5.

According to a company filing with the London Stock Exchange, the company has accepted for purchase the following securities that were tendered by the early tender deadline:

• $318,976,000 of its $1 billion of 6.86% callable perpetual core tier 1 notes;

• £413,713,000 of its £500 million of 5.3304% step-up callable perpetual reserve capital instruments;

• £309,499,000 of its £400 million of 6% callable perpetual core tier 1 notes;

• £403.1 million of its £500 million of 6.3688% step-up callable perpetual reserve capital instruments;

• $816,936,000 of its $1.35 billion of 5.926% step-up callable perpetual reserve capital instruments; and

• $903,035,000 of its $1.25 billion of 7.434% step-up callable perpetual reserve capital instruments.

The securities are listed in order of their acceptance priority levels.

The settlement date for these securities is expected to be Dec. 22.

The offer remains open until 11:59 p.m. ET on Jan. 4. The settlement date is expected to be Jan. 9 for securities tendered after the early tender date.

For each $1,000 or £1,000 principal amount, the company will pay $815 for the 6.86% notes, £700 for the 5.3304% reserve capital instruments, £730 for the 6% notes, £780 for the 6.3688% reserve capital instruments, $845 for the 5.926% reserve capital instruments and $945 for the 7.434% reserve capital instruments.

These payments include an early tender premium of $50.00 or £50.00 for notes tendered by the early tender deadline.

Holders will also receive accrued interest.

The purchaser of pound sterling-denominated securities tendered in the offer will be Barclays GBP Funding LLP, and the purchaser of dollar-denominated securities will be Barclays USD Funding LLP.

When the offer began, the company said it would purchase up to £2.5 billion of capital securities.

According to Barclays' Dec. 20 filing, each purchaser plans to accept all securities tendered, subject to the holders having met the condition that they tender a minimum amount of the securities, and the securities will not be prorated.

All securities purchased in the offers will not be reissued or resold.

On Dec. 16, the company extended the early tender deadline from 5 p.m. ET on Dec. 16 and the final deadline from 11:59 p.m. ET on Jan. 3.

Barclays said that the offers will allow it to enhance the quality of its capital structure through the reduction of non-Basel III compliant tier 1 capital.

The dealer managers are Barclays Bank (44 20 7773 8990 or liability.management@barcap.com) and Barclays Capital Inc. (212 528-7581, 800 438-3242 or liability.management@barcap.com).

The tender agent is Lucid Issuer Services Ltd. (44 20 7704 0880; attn: Thomas Choquet/Yves Theis at barclays@lucid-is.com). For holders of dollar-denominated securities, contact Global Bondholder Services Corp. (212 430-3774 or 866 937-2200; attn: Corporate Actions at Info@gbsc-usa.com).

Barclays is a financial services provider based in London.

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