Tesco Makes Tender Offer For Dollar, Euro And Sterling Notes

(Alliance News) - Tesco PLC on Tuesday announced tender offers for its USD1.15 billion in 6.15% ...

Alliance News 19 January, 2021 | 9:28AM
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(Alliance News) - Tesco PLC on Tuesday announced tender offers for its USD1.15 billion in 6.15% senior notes due 2037, as well as a number of euro and sterling-denominated notes.

The cash offer is for any and all of the outstanding dollar notes and is intended to strengthen the supermarket chain's balance sheet though "addressing upcoming debt maturities and achieving net annual interest savings".

The same reasoning was provided for the euro and sterling-denominated tender offers, including for holders of its EUR750.0 million 2.500% notes due 2024 and EUR600.0 million 5.125% notes due 2047.

Tesco also made offers for its GBP900.0 million 6.125% notes due 2022; GBP515.0 million 5% notes due 2023; GBP200.0 million 6% notes due 2029; GBP200.0 million 5.50% notes due 2033; GBP300.0 million 4.875% notes due 2042; and GBP500.0 million 5.20% notes due 2057.

On January 19, Tesco said it plans to issue a new series of euro-denominated fixed rate notes under its GBP15.00 billion euro note programme.

Whether it will purchase any of the euro or sterling notes tendered is conditional on successful completion of the new notes offering, while the US tender offer is not conditional.

Tesco shares were down 0.8% Tuesday morning in London at 241.00 pence.

By Anna Farley; annafarley@alliancenews.com

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