Amadeusz Juskowiak

Tesco issues 100 mln stg convertible bond

Tesco Plc TSCOL is issuing a 100 mln stg convertible eurobond due February 20 2002 paying an indicated coupon of four to 414 pct and priced at par lead manager Credit Suisse First Boston Ltd said

The issue is callable after 90 days at 106 pct declining by one pct per annum to par thereafter It is not callable until 1992 unless the share price exceeds 130 pct of the conversion price Final terms will be set on or before March 9

The deal has an investor put option after five years which will be priced to give the investor an annual yield to the put of 834 to nine pct

The selling concession is 112 pct while management and underwriting each pay 12 pct The payment date is March 25 and there will be a short first coupon period

The issue is available in denominations of 1000 and 5000 stg and will be listed in London

REUTER