Tesco Corporate Treasury Services PLC, the financing arm of U.K. grocer Tesco PLC for certain of its affiliates, on Oct. 15 announced a tender offer for €1.25 billion of its 1.375% notes due 2019 in a bid to strengthen the company's balance sheet.
Tesco also invited holders of its outstanding £350 million, 5.50% notes due 2019; £900 million, 6.125% notes due 2022; £200 million, 6% notes due 2029; £200 million,5.50% notes due 2033; £300 million, 4.875% notes due 2042; and £500 million, 5.20% notes due 2057 to tender their notes for purchase by Tesco Corporate Treasury Services or Tesco for cash.
Excluding the 2019 series notes, the company expects to determine the purchase price for the notes at 2 p.m. London time on Oct. 29, excluding the 2019 series notes. The settlement date is set for Nov. 5.
Simultaneously, the company announced a plan to issue, subject to market conditions, a new series of euro-denominated, fixed rate notes under its £15 billion euro note program.
Tesco also launched an offer to buy, for cash, its $1.15 billion, 6.15% senior notes due 2037, with up to $325 million in aggregate nominal amount. The principal outstanding amount for the notes is $850 million.
The tentative early tender deadline for Tesco's U.S. tender offer is 5 p.m. ET on Oct. 26, the early settlement date is scheduled for Oct. 31 and the final settlement date will be Nov. 14.
BNP Paribas, Citigroup Global Markets Ltd., Goldman Sachs International and MUFG Securities EMEA Plc are acting as dealer managers for the offers, while Lucid Issuer Services Ltd. is the information and tender agent.