REG - Natwest Markets PLC - Notice of Successor Rate and Adjustment Spread

London Stock ExchangeAnnouncement

16/03/2023 13:00

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RNS Number : 2366T  Natwest Markets PLC  16 March 2023

NatWest Markets Plc

Notice of Successor Rate and Adjustment Spread

in relation to

USD 9,000,000 Floating Rate Notes due March 2025 (ISIN: XS2136625204; Series
39)

(the "Notes")

 

16 March 2023

NatWest Markets Plc (the "Issuer") notes the announcements by the Financial
Conduct Authority* and ICE Benchmark Administration** on 5 March 2021
regarding the future cessation and loss of representativeness of certain LIBOR
benchmarks.

Following the occurrence of a Benchmark Event under the contractual terms and
conditions of the Notes, and as required by the terms and conditions of the
Notes, the Issuer has appointed an Independent Adviser. The Independent
Adviser has determined and notified the Issuer of the "Successor Rate" and
"Adjustment Spread" set out below for the purposes of the Notes in accordance
with the terms and conditions. This Successor Rate and Adjustment Spread are
effective from the interest period commencing on the interest payment date
falling in or nearest to March 2023.

The Successor Rate is the Secured Overnight Financing Rate (SOFR), compounded
in arrear, applying a 5 U.S. Government Securities Business Day
backward-shifted observation period.

The Adjustment Spread is set at 0.26161 per cent. per annum in line with the
public statements of the Alternative Reference Rates Committee (ARRC), and
applying the International Swaps and Derivatives Association (ISDA) fixed
fallback spread for 3 month USD LIBOR. This Adjustment Spread will be fixed
until maturity of the Notes (being the interest payment date falling in or
nearest to March 2025).

Accordingly, interest on the Notes will be calculated on the basis of the
Successor Rate plus the Adjustment Spread, and the original Margin. Interest
will continue to be paid quarterly.

Updates to the contractual documentation for the Notes, including
consequential changes, consistent with the above determination, will be
notified directly to Noteholders in accordance with the terms and conditions
of the Notes.

Today the Issuer executed the supplemental trust deed to effect the
implementation of the "Successor Rate" and "Adjustment Spread" and related
changes in respect of the Notes. The supplemental trust deed is available at
http://www.rns-pdf.londonstockexchange.com/rns/2366T_1-2023-3-16.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2366T_1-2023-3-16.pdf) .

Accordingly, interest on the Notes will be calculated on the basis of the
Successor Rate plus the Adjustment Spread, and the original Margin. Interest
will continue to be paid quarterly.

For further information please contact your usual NatWest Markets contact or:

 

Mark Anwender

Head of Documentation and Funding

+44 7385 366 760

This announcement is not, and does not constitute or form any part of, an
offer to sell or the solicitation, invitation or recommendation to purchase
any securities of NatWest Markets Plc. The securities discussed in this
announcement have not been, and will not be, registered under the U.S.
Securities Act of 1933, as amended (the "Securities Act"), or the securities
laws of any state or other jurisdiction of the United States, and the
securities may not be offered or sold in the United States or to, or for the
account or benefit of, any "U.S. person" (within the meaning of Regulation S
under the Securities Act) unless they have been registered under the
Securities Act, or are offered or sold in a transaction exempt from, or not
subject to, the registration requirements of the Securities Act and any other
applicable U.S. state securities laws or local securities laws.

 

 Legal Entity Identifier
 NatWest Markets Plc  RR3QWICWWIPCS8A4S074

* https://www.fca.org.uk/news/press-releases/announcements-end-libor
(https://www.fca.org.uk/news/press-releases/announcements-end-libor)

**
https://ir.theice.com/press/news-details/2021/ICE-Benchmark-Administration-Publishes-Feedback-Statement-for-the-Consultation-on-Its-Intention-to-Cease-the-Publication-of-LIBOR-Settings/default.aspx
(https://ir.theice.com/press/news-details/2021/ICE-Benchmark-Administration-Publishes-Feedback-Statement-for-the-Consultation-on-Its-Intention-to-Cease-the-Publication-of-LIBOR-Settings/default.aspx)

 

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