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British Telecommunications makes tender offer to purchase for cash up to 40% of its outstanding €2.25B 7.125% notes due 2011
September 4, 2003
LONDON -- British Telecommunications plc (the 'Company') announces today a tender offer to purchase for cash up to 40 per cent. of its outstanding EUR2,250,000,000 7.125 per cent. Notes due 2011 (originally issued as EUR2,250,000,000 6.875 per cent. Notes due 2011). The cash tender offer will be made by way of a Tender Offer Announcement (the 'Announcement'). Defined terms used below have the meanings given to them in the Announcement, which contains the detailed terms of the Tender Offer.
As at 30 June 2003, the Company had GBP9 billion of net debt comprising of GBP16 billion of gross debt and GBP7 billion of short-term cash and investments. The cash and investments have accrued mainly through the sale of non-core assets and operational cash generation. This transaction is consistent with the Company's plans to reduce gross debt whilst not materially affecting the Group's strong liquidity position.
The initial marketing period up until 12 September will be followed by the final fixing of the spread on 15 September 2003. Between 15 September and 22 September 2003 Noteholders may either tender their Notes through a Contingent Order via Deutsche Bank AG London, acting as agent for the Company, or place an Electronic Order through Euroclear or Clearstream, Luxembourg. If the total of Notes tendered exceeds the amounts of Notes that the Company will accept, then orders will be scaled back pro rata as described in the Announcement. The purchase price will be calculated by reference to the yield on the specified Benchmark Bond plus the final fixed spread and will be announced on 24 September 2003. The purchase price plus accrued interest on the Notes is expected to be settled on 29 September 2003.
British Telecommunications plc (BT)
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