Banco Mercantil do Brasil tender offer for 9 5/8% notes oversubscribed

By Angela McDaniels

Tacoma, Wash., Dec. 14 – Banco Mercantil do Brasil SA had received tenders for $37,824,000 principal amount of its 9 5/8% subordinated notes due 2020 as of 5 p.m. ET on Dec. 11, which was the early tender date in a tender offer that began Nov. 30.

As previously reported, the company is offering to buy back up to $30 million of its $185,383,000 outstanding 9 5/8% notes.

In accordance with the offer terms, notes will be accepted for purchase in the proportion of 69.2% of the principal amount of notes tendered by each holder prior to the early tender date.

The accepted notes represent 16.2% of the principal amount of notes outstanding as of Nov. 30.

Holders will receive $800 per $1,000 principal amount of notes. This includes a $30 early tender premium for each note tendered by the early tender date.

Holders will also receive accrued interest up to but excluding the settlement date, which will be Dec. 21.

The expiration date is 11:59 p.m. ET on Dec. 28.

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 or mercantil@dfking.com).

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

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