Tesco 30-Yr Mortgage Bond Final Guidance Gilts +1.65

30th Jun 2010 12:10

LONDON (Dow Jones)--U.K. retailer Tesco PLC (TSCO.LN) has set final guidance on its planned 30-year, sterling-denominated, benchmark bond, backed by a commercial mortgage loan, at 165 basis points over gilts, a bank running the sale said Wednesday. Initial guidance was set in the area of 170 basis points over gilts earlier Wednesday. The collateral for the loan is the leasehold interest in 41 U.K. commercial properties, all of which are let to Tesco-related entities, according to a ratings report from Moody's Investors Service, which has assigned a provisional A3 rating to GBP950.15 million of the planned bond issue. Goldman Sachs Group Inc. and HSBC Holdings PLC are acting as co-arrangers for the issue. -by Mark Brown, Dow Jones Newswires; + 44 (0)207 842 9485, [email protected] (END) Dow Jones Newswires June 30, 2010 07:10 ET (11:10 GMT)