Banco de Credito del Peru gets tenders for $114.44 million 6.95% notes through early deadline

By Angela McDaniels

Tacoma, Wash., Oct. 11 - Banco de Credito del Peru SA, acting through its Panamanian branch, had received tenders for $114.44 million, or 95.4%, of its $120 million of 6.95% subordinated notes due 2021 as of 5 p.m. ET on Oct. 7, which was the early exchange date.

All of the notes tendered so far were accepted, and they are expected to settle on Oct. 13.

An exchange offer and consent solicitation for the notes began on Sept. 27.

Holders who tender are deemed to have consented. The consents received so far are enough to adopt the proposed amendments to the indenture, which will eliminate a restriction that could otherwise prevent the company from accepting more than $70 million of tendered notes. The amendments will become operative once a majority of the outstanding notes held by persons other than the company and its affiliates are exchanged.

The exchange offer will continue through midnight ET on Oct. 24. The settlement date will be Oct. 25 for notes tendered after the early exchange date.

The bank is offering new dollar-denominated fixed-to-floating subordinated notes due 2026 in exchange for the existing notes. The interest rate will be 6.875% until Sept. 16, 2021, and then it will be Libor plus 770.8 basis points. The new notes will form a single series with the $350 million of notes issued for cash on Sept. 16.

Holders will receive $1,078.38 principal amount of new notes for each $1,000 principal amount of old notes exchanged. This includes an early participation premium of $30.00 for each $1,000 principal amount of notes tendered by the early exchange date.

The bank will also pay accrued interest up to the settlement date, less the amount of accrued interest on the new notes from Sept. 16.

The exchange ratio, 1.07838, is equal to the exchange price of the existing notes, $1,039.86, divided by the issue price of the new notes, $964.28.

Pricing was set at 2 p.m. ET on Sept. 30 by reference to the 2.125% Treasury due Aug. 15, 2021 plus a spread of 545 bps for the new notes and the 1% Treasury due Aug. 31, 2016 plus a spread of 505 bps for the existing notes.

The offer is conditioned on the new notes issued in the exchange qualifying as fungible with the outstanding fixed-to-floating notes due 2026.

The Lima, Peru, lender said that the purpose of the offer is to diversify the maturity profile of its existing debt by extending a portion of it.

D.F. King & Co., Inc. (800 549-6746) is the information and exchange agent.

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