Investec starts capped tender offer for subordinated notes due 2028

By Marisa Wong

Los Angeles, Nov. 28 – Investec Bank plc announced an invitation to holders of its £420 million fixed-rate reset callable subordinated notes due July 24, 2028 with a reset date on July 24, 2023 (ISIN: XS1859228634) to tender their notes for purchase for cash, up to a maximum acceptance amount, according to a notice.

Pricing will be calculated using the 0.75% U.K. Treasury due July 22, 2023 and a purchase spread of 190 basis points.

If the tender cap is exceeded, notes may be subject to proration.

The maximum amount of notes the company expects to accept will be no greater than the amount of new notes it plans to issue under a concurrent offering. The tender offer is conditioned on the new financing.

The purpose of the tender offer and the proposed issue of sterling-denominated callable fixed-rate resettable subordinated notes by Investec plc is part of the group’s active management of its debt profile and capital base. Net proceeds from the new notes will be used for general financing purposes, including the downstreaming of funds to Investec Bank in the form of subordinated debt. Some or all of the downstreamed funds may be used to fund the repurchase of notes under the tender offer.

Holders who participate in the tender offer may be given priority in allocation of the new notes.

The tender offer expires at 11 a.m. ET on Dec. 2. The new notes are expected to price prior to that deadline.

Pricing for the tender offer will be at or around 6 a.m. ET on the business day after the expiration deadline.

Settlement is slated for Dec. 7.

Citigroup Global Markets Ltd. (+44 20 7986 8969; liabilitymanagement.europe@citi.com), HSBC Bank plc (+44 20 7992 6237; LM_EMEA@hsbc.com) and Merrill Lynch International (+44 207 996 5420; DG.LM-EMEA@bofa.com) are the dealer managers.

Kroll Issuer Services Ltd. (attn.: David Shilson; +44 20 7704 0880; investec@is.kroll.com; https://deals.is.kroll.com/investec) is the tender agent.

Investec is a financial services company listed on both the London and Johannesburg stock exchanges.

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