5.65% Index-Linked Stock 2020
This notice is important, and requires your immediate attention. If you have any doubts as to the contents, you should immediately consult your stockbroker, bank manager, solicitor, accountant or other professional adviser authorised under the Financial Services and Markets Act 2000.
If you have sold your 5.65% Index-Linked Stock 2020 in T.H.F.C. (Indexed) Limited (THFCIL) please send this letter to the stockbroker, bank or other agent through whom the sale was effected for transmission to the purchaser.
22 March 2018
To the holders of 5.65% Index-Linked Stock 2020 (the "Stock") constituted and secured pursuant to the Trust Deed dated 13 November 1990 between (1) THFCIL and (2) Law Debenture Trustees Limited (formerly Eagle Star Trust Company Limited and thereafter L.D.C. Trustees Limited) and deeds supplemental thereto dated 18th March, 1993, 31st March, 1993 and 19th September 2011 and as amended by special supplemental trust deeds made between (inter alia) (1) THFCIL and (2) Law Debenture Trustees Limited dated 30th June 1998 and 16th June 1999 (the "Trust Deeds")
We write to inform you that £376,317 of the Outstanding Principal Amount of the Stock, representing approximately 3% of the Stock in issue will be repaid on 29 March 2018 (redemption date) by way of an early redemption at a price of £252.1040 per £100 of the Outstanding Principal Amount of the Stock being redeemed. This price has been calculated in accordance with condition 3 (1) (b) of the conditions applicable to the Stock and in accordance with the provisions of the Trust Deeds.
For information, the Indexed Outstanding Principal Amount of the Stock being redeemed is £845,939 and in accordance to condition 2 (4) of the conditions applicable to the Stock, this will be repaid and reduced pro rata to existing holdings. As a consequence, for some smaller holdings there will be no redemption.
A cheque for the amount due to you in connection with such redemption of Stock registered in your name will be posted to you on 28 March 2018 and interest and indexation thereon will cease on the redemption date. In order to prepare the repayment cheques, the transfer books of the Stock were closed on 16 March 2018.
Payment in respect of interest due on the Stock for the period to 31 March 2018 and the Repayment Instalment due on 31 March 2018 will be made in accordance with existing instructions.
Repayment of the Stock may give rise to a tax liability depending on your individual circumstances. Any holders of Stock who are in any doubt about the effect of the redemption on their tax position are recommended to consult their professional adviser.
We will issue a new certificate in respect of the Stock registered in your name, within 10 business days of redemption date, updated to reflect the early redemption as set out in this notification. Please destroy your original certificate(s) which will have no further value, or return the same to the Registrar, Link Market Services Limited, Client Services (THFC –S377), The Registry, 34 Beckenham Road, Beckenham, BR3 4TU, for destruction.
For and on behalf of T.H.F.C. (Indexed) Limited