Tesco has announced an invitation to holders of its outstanding €1.25bn worth of loan notes due in 2019, as well as £2.65bn worth of its sterling denominated notes due between 2019 and 2057. The move is a bid to pay down as much as £700m in debt.
The sterling notes subject to the offer are the £350m 5.5% notes due in 2019, the £515m 5.0% notes due 2023, the £200m 66.0% notes due in 2029, the £200m 5.5% notes due in 2033, the £300m 4.875% notes due in 2042 and £500 5.2% notes due in 2057.
The tender expires on October 24, with pricing taking place the following day and settlement on October 30.
“The offers are being made in the context of Tesco’s continuing efforts to strengthen the balance sheet and are aimed at efficiently using surplus liquidity to reduce gross debt,” its statement said.
The group said it will accept up offers for notes converting to a value of up to £700m, however, it reserves the right to accept "significantly more or significantly less than" such an amount.
Tesco shares were up 0.6% on Monday at 187.15 pence.