RNS Number : 9650Q

Land Securities Group PLC 18 September 2017

18 September 2017

Land Securities Group PLC ("Landsec")

Landsec announces final results of the tender offers

On 6 September 2017, Landsec's wholly-owned subsidiary, Land Securities PLC, launched separate invitations to holders of three tranches of its bonds to tender their notes for cash. Land Securities PLC confirms that it will accept for purchase in cash an aggregate principal amount of notes across two tranches equal to £502m at a cash cost of £673m. The final results of the offer are contained in the release issued to the Irish Stock Exchange on Friday 15 September 2017 (see below).

In addition, Land Securities Capital Markets PLC confirms it will issue a £500m bond with an expected maturity of 20 years, paying a coupon of 2.625% and a £500m bond with an expected maturity of 40 years, paying a coupon of 2.75%.

Based upon Landsec's reported debt position and valuation at 31 March 2017, the pro forma impact of the tender offers and new issuance is as follows:

  • The Group's weighted average maturity of debt will be extended by 5.2 years.

  • Group LTV increases by 1.2 percentage points.

  • Adjusted diluted net assets will be circa £171m lower.

  • The annual net interest saving on the tendered bonds, taking into account the cost of the new issuance, will be circa £8.4m. The annual cost of terming out circa £325m of short term debt will be circa £6.3m.

The following release was issued to the Irish Stock Exchange on Friday 15 September 2017 by Land Securities PLC:

NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA (the United States) OR INTO ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.

15 September 2017

LAND SECURITIES PLC ANNOUNCES FINAL RESULTS OF THE TENDER OFFERS

On 6 September 2017, Land Securities PLC (theOfferor) launched separate invitations to holders of Land Securities Capital Markets PLC's (theCompany) outstanding (a) 5.376 per cent. Class A6 Notes due September 2029 (ISIN: XS0204780125), (b) 5.396 per cent. Class A7 Notes due July 2032 (ISIN: XS0204780554) and (c) 5.125 per cent. Class A11 Notes due February 2036 (ISIN: XS0286155071) (together, the Notes), to tender their Notes for purchase by the Offeror for cash (each an Offer and together, the Offers) , subject to applicable offer and distribution restrictions. The Offeror announced the indicative results of the Offers earlier today.

Capitalised terms used and not otherwise defined in this announcement have the meanings given in the tender offer memorandum dated 6 September 2017 (the Tender Offer Memorandum).

The Offeror announces that it will (subject to satisfaction or waiver of the New Issue Condition) accept for purchase in cash an aggregate principal amount of Class A6 Notes and Class A11 Notes validly tendered pursuant to the Offers equal to £502,295,000. The Offeror will not be accepting for purchase any of the Class A7 Notes tendered for purchase pursuant to the Offers. The final results of the Offers are as follows:

Description of the Notes

Coupon

ISIN / Common Code

Aggregate Principal Amount of Notes tendered

Aggregate Principal Amount of Notes accepted for purchase

ScalingFactor (per cent.)

Purchase Yield (per cent.)

Purchase Price (per cent.)

Accrued Interest (per

£1,000)

Class A6 Notes 5.376 per

cent.

XS0204780125

/ 020478012

£219,480,000 £219,480,000 N/A 1.925 131.317 £25.71

Class A11 Notes

5.125 per cent.

XS0286155071

/ 028615507

£282,815,000 £282,815,000 N/A 2.430 136.226 £6.41

The Offers remain subject to the conditions and restrictions set out in the Tender Offer Memorandum.

Whether the Offeror will purchase any Notes validly tendered in the Offers is subject, without limitation, to the signing by the Company and the respective Managers in respect of the New Issue of a subscription agreement for the purchase of, and subscription for, the New Notes (the New Issue Condition). The New Issue Condition may be waived by the Offeror.

Subject to the satisfaction (or waiver) of the New Issue Condition, the expected Tender Offer Settlement Date is 22 September 2017.

Full details concerning the Offers are set out in the Tender Offer Memorandum.

Questions and requests for assistance in connection with the Offers, may be directed to the Dealer Managers and the Tender Agent, the contact details for both of which are set out below.

BNP Paribas (Telephone: +44 20 7595 8668; Attention: Liability Management Group; Email: liability.management@bnpparibas.com) and Citigroup Global Markets Limited (Telephone:+44 20 7986 8969; Attention: Liability Management Group; Email:liabilitymanagement.europe@citi.com) are acting as Dealer Managers and Lucid Issuer Services Limited (Telephone:+44 20 7704 0880; Attention: Thomas Choquet / Arlind Bytyqi; Email: landsecurities@lucid-is.com) is acting as Tender Agent.

This announcement is released by Land Securities PLC and contains information that qualified or may have qualified as inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), encompassing information relating to the Offers described above. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is made by Martin Greenslade, Director of Land Securities PLC.

DISCLAIMER This announcement must be read in conjunction with the Tender Offer Memorandum. No offer or invitation to acquire or sell any securities is being made pursuant to this announcement. The Dealer Managers do not take responsibility for the contents of this announcement. The distribution of this announcement and the Tender Offer Memorandum in certain jurisdictions may be restricted by law. Persons into whose possession this announcement and/or the Tender Offer Memorandum come into are required by each of the Offeror, the Dealer Managers and the Tender Agent to inform themselves about, and to observe, any such restrictions.

Landsec

Investor Relations Edward Thacker

T: +44 (0)20 7024 5185

edward.thacker@landsec.com

- Ends -

This information is provided by RNS

The company news service from the London Stock Exchange

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Land Securities Group plc published this content on 18 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 18 September 2017 06:43:04 UTC.

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