Bahrain's BBK starts exchange offer for subordinated step-up floaters

By Jennifer Chiou

New York, Nov. 15 - BBK BSC said that it is inviting holders of its $152.43 million of outstanding subordinated step-up floating-rate notes due 2017 to exchange their notes for new dollar-denominated senior unsecured floating-rate notes due 2018.

The company is offering a like amount of the new notes in exchange for validly tendered old notes, plus accrued interest. Settlement is slated for Dec. 2.

Those who wish to participate should tender for exchange a minimum of $200,000 of their notes prior to 11 a.m. ET on Nov. 29.

The coupon of the new notes will be determined at 5 a.m. ET on Nov. 23.

The company noted that the rationale for the exchange is to improve the efficiency of its capital structure and optimize its liquidity profile by refinancing the retired subordinated notes with senior unsecured funding.

The dealer manager is HSBC Bank plc (44 207 991 5774; liability.management@hsbcib.com). The exchange agent is Lucid Issuer Services Ltd. (44 20 7704 0880; attn: Thomas Choquet/Sunjeeve Patel at bbk@lucid-is.com).

BBK is a retail lender that is part-owned by the government of Bahrain. It originally issued $275 million of the existing floaters.

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