Commentary & Deal Flow

Priced: 5.5yr: 8.25% / 100
Benchmark: 5.5yr: Gilt 4.00% 22-Oct-31 / Spread +386bp

Guidance: 8.25-8.50%
IPTs: Mid-to-High 8%

• Issuer: Co-operative Group Limited
• Company: The Co-operative Group
• Ticker: COOPWH
• Business: Co-op Group is one of the world’s largest consumer co-operatives, operating across food retail, funerals, insurance and legal services. It is owned by its over 7m members across the UK.
• Use of Proceeds: Along with £150m term loan raised in April, to refinance its existing £350m Senior Notes due 08-Jul-26 at maturity, pay down the £52m drawn on its revolver and £98m cash on the B/S; with an amount equal to net proceeds allocated in accordance with Co-op’s Sustainable Bond Framework.
• Security Type: Sustainability Senior Notes
• Size: £350m
• Currency: GBP
• Maturity: 15-Dec-31
• Call Protection: NC2 (06/01/28) (MWC G+50bp); Call Schedule: Commencing 1st June 2028: 104.1250% Commencing 1st June 2029: 102.0625% Commencing 1st June 2030 and thereafter: 100.0000%. Special call: 10% per year the 1st 2 years at 103
• Coupon: 8.25%
• Issue Price: 100
• Yield to Maturity: 8.25%
• Benchmark: Gilt 4.00% UKT due 22-Oct-31
• Spread to Benchmark: 386 bps
• Instrument Rating: NR/BB- (--/stable)
• Interest Payment Date: Semi-annually in arrears, on each of 15-Jan and 15-Jul each year, commencing 15-Jan-27
• Call Schedule: Commencing 1st June 2028: 104.1250% Commencing 1st June 2029: 102.0625% Commencing 1st June 2030 and thereafter: 100.0000%
• Governing Law: New York
• Format: RegS Only
• Listing: The International Stock Exchange
• CoC: 101
• Denoms: £100k X £1k
• Global Coordinators and Joint Bookrunners: NatWest (B&D), Lloyds Bank Corporate Markets
• ISIN (RegS): XS3392868256
• Common Code (RegS): 339286825
• GIC Timing: Tuesday, 26-May, 11:00 UKT
• Small Group Meetings: Tuesday 26-May (City), Wednesday 27-May (West End)
• GIC Registration Details: https://evercall.co/oacc/89361
• Deal Roadshow Direct link: https://dealroadshow.com/e/COOP2026GIC
• Timing: Books closed 13:00 UKT / 14:00 CET today, Thursday 28th May
• Trade Date: 28-May-26
• Settlement Date: 11-Jun-26 (T+10)
• Target Market: Manufacturer target market (EU MIFID II / UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs/FCA Product Disclosure Sourcebook key information document (KID)/disclosure document, as applicable has been prepared as not available to retail in EEA or in the UK
• ToE: 15:30 UKT, 28-May-26
• FTT: 16:45 UKT, 28-May-26