Tesco To Price April 2040 Mortgage Bond At Gilts +1.70 Area

30th Jun 2010 09:54

LONDON (Dow Jones)--U.K. retailer Tesco PLC (TSCO.LN) has set guidance on its planned 30-year, sterling-denominated, benchmark bond, backed by a commercial mortgage loan, in the area of 170 basis points over gilts, a banker involved in the deal said Tuesday. 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 04:54 ET (08:54 GMT)