Barclays wraps tender offers; pricing set for euro, sterling notes

By Susanna Moon

Chicago, Jan. 12 – Barclays Bank plc announced the results of the tender offer for eight series of its notes.

The tender offers ended at 11 a.m. ET on Jan. 11 for the issuer’s sterling- and euro-denominated notes and at 5 p.m. ET on Jan. 11 for its dollar-denominated notes. The offers were announced on Jan. 4.

In the dollar-denominated offers, the company accepted tenders as follows, with pricing for each $1,000 principal amount:

• $1,277,324,000 of the $2 billion outstanding 2.5% senior notes due 2019 with a purchase price of $1,021.89 using the 1.171% Treasury note plus 60 basis points;

• $795,113,000 of the $1,597,978,000 outstanding 6.75% senior notes due 2019 with a purchase price of $1,157.94 using the 1.171% Treasury note plus 70 bps;

• $835,886,000 of the $1,774,363,000 outstanding 5.125% senior notes due 2020 with a purchase price of $1,120.46 using the 1.566% Treasury note plus 40 bps; and

• $1,474,260,000 of the $2.25 billion outstanding 3.75% senior notes due 2024 with a purchase price of $1,047.62 using the 2.147% Treasury note plus 95 bps.

Of these amounts, $3,259,000 of the 2.5% notes, $1,414,000 of the 6.75% notes, $3,256,000 of the 5.125% notes and $984,000 of the 3.75% notes remain subject to guaranteed delivery procedures, according to a company press release.

Pricing was set at 2 p.m. ET on Jan. 11 using a fixed spread over the yield to maturity of a reference U.S. Treasury security.

The company also will pay accrued interest up to but excluding the settlement date of Jan. 14.

Euro, sterling note offers

The company also accepted tenders for three series of euro-denominated notes and a series of sterling-denominated notes, according to a separate company notice, with pricing per $1,000 principal amount set at 9 a.m. ET on Jan. 12 as follows:

• €150,642,000 of the €1,482,885,000 outstanding 4.875% notes due 2019 with a purchase price of €1,173.73 using a benchmark rate of 0.069% and purchase yield of 0.019%;

• €435.02 million of the €1.25 billion outstanding 2.125% notes due 2021 with a purchase price of €1,080.60 using a benchmark rate of 0.273% and purchase yield of 0.523%;

• €257,577,000 of the €1 billion outstanding 2.25% notes due 2024 with a purchase price of €1,085.69 using a benchmark rate of 0.723% and purchase yield of 1.173%; and

• £221,768,000 of the £403,174,000 outstanding 5.75% notes due 2021 with a purchase price of £1201.88 using a benchmark rate of 1.247% and purchase yield of 1.906%.

The company will pay accrued interest up to but excluding the settlement date of Jan. 14.

The tender offers for the euro- and sterling-denominated notes are only being made to holders who are outside the United States.

The offers were made as part of the company’s ongoing liability management. Barclays said the intention is to support the group’s transition to a holding company capital and term funding model in line with regulatory requirements.

The dealer manager is Barclays (212 528-7581, 800 438-3242, 44 0 20 3134 8515, us.lm@barclays.com or eu.lm@barclays.com). The tender agent is Lucid Issuer Services Ltd. (44 20 7704 0880, 800 495-5148 or barclays@lucid-is.com).

The bank is based in London.

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