NatWest Announces Offer For Tier 2 Notes, Trust Securities, And PROs

(Alliance News) - FTSE 100-listed lender NatWest Group PLC on Monday said it has commenced cash ...

Alliance News 14 September, 2020 | 7:06PM
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(Alliance News) - FTSE 100-listed lender NatWest Group PLC on Monday said it has commenced cash tender offers for certain outstanding notes.

NatWest, formerly Royal Bank of Scotland Group, is offering to purchase four of its classes of notes.

This includes its 6.425% non-cumulative trust preferred securities, of which the principal amount issued is USD650.0 million and the principal amount outstanding is USD393.6 million, as well as its 7.648% USD perpetual regulatory tier one Securities, series 1 - for which the principal amount issued is USD1.20 billion and the outstanding amount is USD761.7 million.

The other two notes included in the offer are its 6.125% subordinated tier 2 notes due 2022 - amount issued and outstanding USD2.25 billion - and 6.100% subordinated tier 2 notes due 2023 for which the amount issued and outstanding is USD1.00 billion.

The purchase price for each USD1,000 principal amount will be equal to an amount reflecting a yield to the maturity date of the tier 2 notes, or the yield on the first call date for the trust securities and PROs, equal to the sum of the reference yield plus their fixed spread. The reference yield is to be determined by the dealer managers.

Specifically, the purchase price will be equal to the value of all remaining payments of principal and interest on the relevant series of notes up to and including the scheduled maturity or the first call date, discounted to the settlement date at a discount rate equal to the relevant reference yield plus the relevant fixed spread, minus accrued interest in the case of the tier 2 notes and PROs or accrued distribution in the case of the trust securities.

The settlement date is expected to be September 24.

Shares in NatWest closed up 0.6% at 102.75 pence in London on Monday.

By Anna Farley; annafarley@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
NatWest Group PLC 155.50 GBX -1.14

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