Severn Trent Plc : Cash Tender Offer - Results and Pricing Announcement

NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA

25 January 2012

CASH TENDER OFFER - RESULTS AND PRICING ANNOUNCEMENT

SEVERN TRENT UTILITIES FINANCE PLC ANNOUNCES THE RESULTS AND PRICING OF ITS CASH TENDER OFFER IN RESPECT OF ITS £200,000,000 5.25 PER CENT. NOTES DUE 2014 (ISIN XS0176529583)

Severn Trent Utilities Finance Plc (formerly Severn Trent Water Utilities Finance Plc) (the Offeror) announced on 17 January 2012 an invitation (the Offer), subject to certain offer and distribution restrictions, to eligible holders (the Noteholders) of its £200,000,000 5.25 per cent. Notes due 2014 (ISIN XS0176529583) (the Notes) to tender any and all such Notes for purchase by the Offeror for cash, upon the terms and conditions set out in a Tender Offer Memorandum dated 17 January 2012 (the Tender Offer Memorandum)

Capitalised terms used and not otherwise defined in this announcement have the meaning given to them in the Tender Offer Memorandum.

Results and Pricing of the Offer

The results and pricing of the Offer is set out below:

Description of the Notes	ISIN/ Common Code	Outstanding Principal Amount	Principal amount accepted for purchase	Benchmark Security Rate	Purchase Yield*	Purchase Price
5.25 per cent. Notes due 2014	XS0176529583 / 017652958	£200,000,000	£150,577,000	0.466%	1.4714%	110.515%

*The Purchase Yield is expressed on an annualised basis

The Offeror has accepted for purchase pursuant to the Offer all Notes validly tendered, and expects to purchase the relevant Notes on the scheduled Settlement Date of 27 January 2012. Following settlement, £49,423,000 in principal amount of the Notes will remain outstanding.

The Offeror will pay accrued and unpaid interest for the period from (and including) the interest payment date for the Notes immediately preceding the Settlement Date to (but excluding) the Settlement Date in respect of Notes accepted for purchase pursuant to the Offer.

DEALER MANAGERS
Barclays Bank PLC 5 The North Colonnade London E14 4BB United Kingdom Telephone: [phone] Attention: Liability Management Group Email: [e-mail]	HSBC Bank plc 8 Canada Square London E14 5HQ United Kingdom Telephone: [phone] Attention: Liability Management Group Email: [e-mail]
The Royal Bank of Scotland plc 135 Bishopsgate London EC2M 3UR United Kingdom Telephone: [phone] Attention: Liability Management Group Email: [e-mail]
TENDER AGENT
Lucid Issuer Services Limited Leroy House 436 Essex Road London N1 3QP United Kingdom Telephone: [phone] Attention: Thomas Choquet / Sunjeeve Patel Email: [e-mail]

Offer and Distribution Restrictions

The Offer has expired. This announcement does not constitute an offer of any securities or an invitation to participate in any investment activity for any purpose.

The Offer was conducted subject to the Offer and Distribution Restrictions set out in the Tender Offer Memorandum.

General

The Tender Offer Memorandum did not and does not constitute an offer to buy or the solicitation of an offer to sell Notes (and tenders of Notes in the Offer are not accepted from Noteholders) in any circumstances in which such offer, solicitation or tender is unlawful.