IKB holders may tender capital notes, hybrid notes at 20 until Feb. 2

By Susanna Moon

Chicago, Jan. 13 – IKB Deutsche Industriebank AG supports the tender offer by LSF6 Rio Sarl for €200 million of notes issued by Capital Raising GmbH and for €200 million of notes issued by Hybrid Raising GmbH, according to a press release by EQS Group AG.

The tender offer will end at 10 a.m. ET on Feb. 2.

The purchase price of 20% of par represents a premium of about 8% of nominal value to recent stock exchange prices, the release noted.

Capital Raising GmbH issued the capital notes in 2002, and Hybrid Raising GmbH issued the hybrid notes in 2004, each with a total volume of €200 million.

“The notes have economically participated in losses of IKB and for the last time received interest payments in July 2007. The repayment value of the notes was reduced to zero as of March 31, 2012 and has remained at that level since,” the press release noted.

“Servicing the compensation agreements of a total amount of €1,151.5 million and the value recovery rights of the hybrid investors means that IKB AG will probably not report any, or only minimal, profit for a long time to come, even if results are positive. In addition, to the extent that net income can be reported in future, the reduction of net accumulated losses means that it will not be possible to replenish the notes, pay interest on the notes or distribute a dividend to the shareholders of IKB AG,” the release added.

For more information, go to ikb-tender.de.

IKB is a bank based in Dusseldorf, Germany.

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