MUFG prices tender for $1 billion notes, announces purchase amounts

New York, March 13 – Mitsubishi UFJ Financial Group, Inc., or MUFG, set pricing in its tender offer to buy up to $1 billion of its $4 billion of notes from two series and announced the amounts that it will purchase.

MUFG previously said that the offer was fully subscribed by the early tender date and, as a result, that it would accept tendered notes on a pro rata basis.

The results are as follows, according to a 6-K filing with the Securities and Exchange Commission:

• MUFG will buy $850 million of the $2,046,101,000 tendered from its $3.1 billion of outstanding 2.95% senior notes due March 1, 2021. The purchase amount matches the tender cap. Pricing is $1,004.71 per $1,000 principal amount, set using the 2.25% U.S. Treasury notes due Feb. 15, 2021 plus 35 bps; and

• MUFG will buy $150 million of the $261,029,000 tendered from its $900 million of outstanding floating-rate senior notes due March 1, 2021. The purchase amount again matches the tender cap. Pricing is $1,048.75 per $1,000 principal amount.

MUFG used a factor of 42.5% for the 2.95% notes and of 58.9% for the floaters.

Acceptance amounts were rounded down to the nearest $1,000 principal amount equal to or in excess of $200,000 to avoid the purchase of notes in a principal amount less than $200,000 and other than in multiples of $1,000 above that figure.

MUFG did not accept any tenders that would result in notes in a principal amount of less than $200,000 being returned to the holder.

The total payment includes an early tender premium of $50.00 for each $1,000 principal amount of notes tendered that will only be paid to those who tendered before the early deadline.

Holders will also receive accrued interest.

Pricing for the 2.95% notes was set at 11 a.m. ET on March 12.

Settlement will occur on March 14 for early tendered notes.

The amounts tendered reflect the response by the early deadline of 5 p.m. ET on March 9.

Because the offer is already fully subscribed, MUFG said it does not expect to accept any further tenders.

The tender had an expiration of 11:59 p.m. ET on March 23 with final settlement planned for March 27.

When MUFG announced the tender on Feb. 26 it said it was carrying out the transaction “as part of its continuing strategy to manage its balance sheet and to reduce interest expense as well as to improve the efficiency of its capital structure.”

Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) and MUFG Securities Americas Inc. (877 744-4532 or 212 405-7481) are the dealer managers. D.F. King & Co., Inc. (800 859-8508, 212 269-5550 or mufg@dfking.com) is the information agent and the tender agent.

MUFG is a Tokyo-based bank.

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