National Grid unit BTIF gets early tenders for $531.25 million of 0% bonds; pricing set

By Susanna Moon

Chicago, March 8 – British Transco International Finance BV (BTIF) said investors had tendered $531.25 million of its $1,474,000,000 outstanding zero-coupon bonds due Nov. 4, 2021 as of 5 p.m. ET on March 7, the early tender date.

BTIF also increased the offer cap to the amount tendered so far and decided to accept for purchase all of the early tendered notes with no pro rata scaling, according to two company updates on Wednesday.

As announced Feb. 22, the company was originally tendering for up to $500 million of the 0% bonds guaranteed by National Grid Gas plc.

The total purchase price will be $8,910.81 for each $10,000 principal amount of notes tendered by the early deadline.

Pricing was set at 11 a.m. ET on March 8 using the 1.875% Treasury note due Jan. 31, 2022 plus 40 basis points for a reference yield of 2.111%.

The early tender payment includes a $300 premium per $10,000 principal amount of notes.

No accrued interest will be paid.

After settlement on March 10, there will be $942,750,000 principal amount of the bonds left outstanding.

The tender was set to end at 11:59 p.m. ET on March 21, but the company will purchase no more notes in the offer because it has been oversubscribed as of the early deadline.

The dealer manager is RBC Capital Markets (+44 20 7029 7063, 212 618-7822, 877 381-2099 or liability.management@rbccm.com). The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, fax +44 20 3004 1590 or ngrid@lucid-is.com).

National Grid plc is a London-based electricity and gas utility.

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