Cadent announces results of tender offer for instruments due 2021

By Sarah Lizee

Olympia, Wash., Oct. 9 – Cadent Finance plc announced the final results of its tender offer for up to £400 million of its £650 million fixed-rate instruments due 2021.

As of the expiration time at 11 a.m. ET on Oct. 8, £487,179,000 of the notes had been validly tendered. The company said it will accept £400 million of the tendered notes for purchase with pro rata scaling at a scaling factor of 83.4967%.

The purchase price was set at 101.094, using the 3.75% U.K. Treasury Gilt due 2021 plus a spread of 20 basis points.

Holders will also receive accrued interest.

The purpose of the offer is to manage the company’s debt profile.

The offer is subject to a financing condition. The company announced that it plans to offer new sterling-denominated guaranteed bonds under its £6 billion euro medium-term note program. The program is guaranteed by Cadent Gas Ltd.

Holders who wish to subscribe for new notes in addition to tendering notes for purchase may receive preference in the allocation of the new notes.

Pricing was set at 5 a.m. ET on Oct. 9.

Settlement is expected for Oct. 11.

Barclays Bank plc (+44 20 3134 8515 or eu.lm@barclays.com), Morgan Stanley & Co. International plc (+44 20 7677 5040 or liabilitymanagementeurope@morganstanley.com) and SMBC Nikko Capital Markets Ltd. (+44 20 3527 7545 or lm.emea@smbcnikko-cm.com) are the dealer managers.

Lucid Issuer Services Ltd. (+44 20 7704 0880 or cadent@lucid-is.com) is the tender agent.

Notes purchased in the offer will be cancelled and not resold.

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