Land Securities : Landsec announces tender offers to purchase bonds

RNS Number : 0005Q

Land Securities Group PLC 06 September 2017

6 September 2017

Land Securities Group PLC ("Landsec")

Landsec announces tender offers to purchase bonds for cash

Landsec confirms that its wholly owned subsidiary, Land Securities PLC, has today launched separate invitations to holders of three tranches of its bonds to tender their notes for cash. The notes have an expected maturity date ranging from 2027 to 2034. In addition, Landsec has announced its intention, subject to market conditions, to issue two new sterling-denominated fixed rate notes with expected maturities of 20 and 40 years.

The aim of these transactions is to term out part of Landsec's short term borrowings and use that opportunity to extend the duration of some of its corporate bonds.

A further release will be issued on 15 September 2017 confirming the results of the tender offers and new issuance.

The following release was issued to the Irish Stock Exchange today by Land Securities PLC:

6 September 2017

Land Securities PLC (theOfferor) has today launched separate invitations to holders of Land Securities Capital Markets

PLC's (the Company) 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, theNotes and each a Series), to tender their Notes for purchase by the Offeror for cash (each an Offer and together, the Offers). The Offers are being made on the terms and subject to the conditions contained

in the tender offer memorandum dated 6 September 2017 (the Tender Offer Memorandum) and are subject to the offer restrictions set out below and as more fully described in the Tender Offer Memorandum.

Copies of the Tender Offer Memorandum are (subject to offer restrictions) available from the Tender Agent as set out below. Capitalised terms used and not otherwise defined in this announcement have the meanings given in the Tender Offer Memorandum.

Summary of the Offers

Class A6 Notes

5.376 per cent.

XS0204780125

/ 020478012

£316,878,000 30

September 2027

UKT 4.25 per cent. December 2027 (ISIN: GB00B16NNR78)

63 bps The Offeror intends to

accept a principal amount of Notes that is no greater than £450,000,000 (the

* The stated Outstanding Principal Amount comprises all Notes outstanding, excluding those held by Land Securities PLC.

The Offers will end at 17:00 hours (London time) on 14 September 2017 (the Expiration Deadline) unless extended, re- opened or terminated by the Offeror.

The Offeror is not under any obligation to accept for purchase any Notes tendered pursuant to the Offers. The acceptance for purchase by the Offeror of Notes tendered pursuant to the Offers is at the sole discretion of the Offeror and tenders may be rejected by the Offeror for any reason.

The Company announced today its intention to issue new sterling-denominated fixed rate notes in either one or two tranches (the New Notes). Whether the Offeror will purchase any Notes validly tendered in the Offers is subject, without limitation, to (i) the pricing of the issue of the New Notes and (ii) 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.

Rationale for the Offers

The purpose of the Offers is to provide liquidity to Noteholders and proactively manage the Land Securities Group's balance sheet.

Details of the Offers

In respect of each Series, the Offeror will, on the Tender Offer Settlement Date, pay for Notes of the relevant Series accepted by it for purchase pursuant to the relevant Offer a price (in respect of each Series, the Purchase Price) to be determined at or around 1:00 p.m. (London time) (the Pricing Time) on or around 15 September 2017 (the Pricing Date) in the manner further described in the Tender Offer Memorandum.

Each Purchase Price will be determined by the Offeror, after consultation with the Dealer Managers, in accordance with market convention and expressed as a percentage of the principal amount of the Notes of the relevant Series (and rounded to the nearest

0.001 per cent. with 0.0005 per cent. being rounded upwards), and is intended to reflect a yield to the Note Step-Up Date of the relevant Series on the Tender Offer Settlement Date based on the relevant Purchase Yield.

Specifically, the Purchase Price applicable to the Notes of a particular Series will equal (a) the value of all remaining payments of principal and interest on the relevant Notes of such Series up to and including the Note Step-Up Date, discounted to the Tender Offer Settlement Date at a discount rate equal to the relevant Purchase Yield, minus (b) Accrued Interest in respect of the Notes of the relevant Series.

Priority Allocation Requests in Respect of New Notes

A Noteholder that wishes to subscribe for New Notes (of either or both tranches if more than one tranche is issued) in addition to tendering Notes for purchase pursuant to an Offer will receive priority in the allocation of the New Notes, subject to the completion of the relevant Offer, the issue of the New Notes, the Offeror and the Company's ultimate discretion in the allocation of the New Notes and the satisfaction of the various steps further described in the Tender Offer Memorandum.

Such priority will be given for an aggregate principal amount of New Notes (such amount, a New Is ue Priority) of up to the product of (a) 1.40 (the Allocation Factor) and (b) the aggregate principal amount of Notes subject to: (i) the submission of a valid Tender Instruction which includes a Priority Option Code (such Tender Instruction, a Tender Instruction with Priority Option Code), and (ii) the acceptance for purchase by the Offeror of the Notes so tendered. Such priority will be given over any investor who is applying for purchase of such New Notes without having Notes accepted in the Offers. To receive priority in the allocation of the New Notes, a Noteholder will need to follow the procedures set out in the Tender Offer Memorandum.

If any Noteholder wishes to subscribe for New Notes or additional New Notes in addition to tendering Notes for purchase by the Offeror, and be eligible to receive New Is ue Priority, it must make a separate application to subscribe for such New Notes or additional New Notes to either of the Dealer Managers (each in its capacity as a Manager in respect of the is ue of New Notes) in accordance with the standard new is ue procedures of such Dealer Manager.

Scaling of Tenders of Notes

The Offeror proposes to accept Notes for purchase pursuant to the Offers up to the Maximum Acceptance Amount subject to the right of the Offeror, in its sole discretion, to accept less than or more than such amount for purchase pursuant to the Offers.

If the aggregate principal amount of Tendered Notes is less than the Maximum Acceptance Amount, the Offeror intends to accept all such tendered Notes. If the aggregate principal amount of the Tendered Notes is greater than the Maximum Acceptance Amount, (subject to the right of the Offeror, in its sole discretion, to accept less than or more than such amount for purchase pursuant to the Offers) the Offeror may accept Notes for purchase on a pro rata basis in the manner described in the Tender Offer Memorandum.

For the avoidance of doubt, the Offeror will determine the allocation of funds between each Series in its sole discretion, and may purchase considerably less (or none) of some Series than of other Series.

Tender Instructions

In order to participate in an Offer, and be eligible to receive the relevant Purchase Price and the relevant Accrued Interest Payment pursuant to such Offer, Noteholders must validly tender their Notes by delivering, or arranging to have delivered on their behalf, a valid Tender Instruction that is received by the Tender Agent by 5.00 p.m. (London time) on 14 September 2017 (the Expiration Deadline). See "Procedures for participating in the Offers" in the Tender Offer Memorandum for further information.

Expected Timetable of Events

The following table sets out the expected dates and times of the key events relating to the Offers. This is an indicative timetable and is subject to change. All times are London time.

Date and time

Date Event

6 September 2017 Day 1 Launch Date

Announcement of Offers and intention of the Company to issue the New Notes. Tender Offer Memorandum available (subject to the offer and distribution restrictions set out in "Offer and Distribution Restrictions") fromthe Tender Agent.

14 September 2017,

5:00 p.m.

On or around 15 September 2017, or such other date as the Offeror may determine

As soon as reasonably

practicable on the Pricing Date

At or around 1:00

p.m. on the Pricing Date

By 4:00 p.m. (the New Issue Pricing Time on the Pricing Date)

As soon as reasonably

practicable after the Pricing Time

Day 7 Expiration Deadline

Final deadline for receipt of valid Tender Instructions by the Tender Agent in order for Noteholders to be able to participate in the Offers (and apply for New Issue Priority by submitting valid Tender Instructions with Priority Option Codes).

Day 8 Pricing Date (T)

Indicative results announcement indicating the aggregate principal amount of each Series expected to be accepted for purchase and indicative pro-ration factors (if applicable).

Pricing

Expected determination of each Purchase Yield and each Purchase Price in respect of the Class A6 Notes, Class A7 Notes, and Class A11 Notes.

Expected pricing of the New Notes.

Announcement ofwhether (subject to satisfaction (or waiver) of the New Issue Condition on or prior to the Tender Offer Settlement Date) it will accept valid tenders of Notes pursuant to any of the Offers and, if so accepted, in respect of each Series accepted for purchase (i) the aggregate principal amount accepted for purchase, (ii) the Purchase Yield, (iii) the Purchase Spread, (iv) the Purchase Price,

(v) the Accrued Interest, (vi) any applicable scaling factor and (vii) the Tender Offer Settlement Date.

On or around 22

September 2017

On or around 22 September 2017

Day 13 Expected Settlement Date of Tender (T+5)

Subject to satisfaction or waiver of the New Issue Condition, expected settlement date for the Offers.

Day 13 New Issue Settlement Date (T+5)

Expected issue of New Notes and settlement of such new issue (subject to the satisfaction of customary conditions precedent to an issue of euromarket debt securities).

The above dates and times are subject, where applicable, to the right of the Offeror to extend, re open, amend, and/or terminate any Offers. Noteholders are advised to check with any bank, securities broker or other intermediary through which they hold Notes whether such intermediary would require receipt of instructions to participate in, or (in the limited circumstances in which revocation is permitted) revoke their instruction to participate in, an Offer before the deadlines specified in the Tender Offer Memorandum.

N oteholders are advised to read carefully the Tender O ffer M emorandum for full details of, and information on the procedures for participating in, the Offers.

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

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.

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.

Offer and Distribution Restrictions

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 comes are required by the Offeror and the Dealer Managers to inform themselves about, and to observe, any such restrictions. Nothing in this announcement or the Tender Offer Memorandum or the electronic transmission thereof constitutes an offer to buy or the solicitation of an offer to sell Notes (and tenders of Notes in the Offers will not be accepted from Noteholders) in any circumstances in which such offer or solicitation is unlawful. In those jurisdictions where the securities, blue sky or other laws require an Offer to be made by a licensed broker or dealer and any of the Dealer Managers or any of their respective affiliates is such a licensed broker or dealer in any such jurisdiction, such Offer shall be deemed to be made by such Dealer Manager or such affiliate, as the case may be, on behalf of the Offeror in such jurisdiction.

United States

The Offers are not being made, and will not be made, directly or indirectly in or into, or by use of the mail of, or by any means or instrumentality of interstate or foreign commerce of or of any facilities of a national securities exchange of, the United States or to any U.S. Person (as defined in Regulation S of the United States Securities Act of 1933, as amended (each a U.S. Person)). This includes, but is not limited to, facsimile transmission, electronic mail, telex, telephone, the internet and other forms of electronic communication. The Notes may not be tendered in the Offers by any such use, means, instrumentality or facility from or within the United States or by persons located or resident in the United States. Accordingly, copies of this announcement, the Tender Offer Memorandum and any other documents or materials relating to the Offers are not being, and must not be, directly or indirectly mailed or otherwise transmitted, distributed or forwarded (including, without limitation, by custodians, nominees or trustees) in or into the United States or to any persons located or resident in the United States. Any purported tender of Notes in an Offer resulting directly or indirectly from a violation of these restrictions will be invalid and any purported tender of Notes made by a person located in the United States, by any person acting for or on the account or benefit of any U.S. Person, or any agent, fiduciary or other intermediary acting on a