Banco Mercantil do Brasil tenders for up to $30 million 9 5/8% notes

By Susanna Moon

Chicago, June 15 – Banco Mercantil do Brasil SA said it began a tender offer for up to $30 million of its $250 million outstanding 9 5/8% subordinated notes due 2020.

The total purchase price will be $820 for each $1,000 principal amount of notes tendered by 5 p.m. ET on June 26, the early tender date. The total amount includes an early tender premium of $30 per $1,000 principal amount.

Holders who tender their notes after the early deadline will receive the base payment of $790 per $1,000 of notes.

The tender offer will end at 11:59 p.m. ET on July 13. Tendered notes may be withdrawn until the early deadline.

The company also will pay accrued interest to but excluding the settlement date, which will be June 30 for early tendered notes and July 15 for remaining tenders.

If the offer is oversubscribed by the early tender date, the bank will not accept for purchase any notes after the early deadline and it will accept for purchase the notes tendered by the early deadline on the early settlement date on a prorated basis, according to a company press release.

The bank said it reserves its right to increase the tender cap by up to $10 million without extending the withdrawal date or otherwise reinstating withdrawal rights.

The dealer manager is HSBC Securities (USA) Inc. (888 HSBC-4LM or 212 525-5552).

The tender agent and information agent is D.F. King & Co., Inc. (212 269-5550, 800 398-1247, fax 212 709-3328 or mercantil@dfking.com).

Banco Mercantil is a lender based in Belo Horizonte, Brazil.

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