MUFG gives final results of tender offers for notes due 2021, 2026

By Sarah Lizee

Olympia, Wash., March 18 – Mitsubishi UFJ Financial Group, Inc. announced the final results of its capped cash tender offers for five series of its notes.

The offers expired at 11:59 p.m. ET on March 16.

The company said it purchased the following notes on the early settlement date, March 13:

• $50 million of the $750 million floating-rate senior notes due March 1, 2021 (Cusip: 606822AB0) for a total consideration of $1,018.75 per $1,000 of notes;

• $400 million of the $2.25 billion 2.95% senior notes due March 1, 2021 (Cusip: 606822AA2) with pricing set using the 1.375% U.S. Treasury due Jan. 31, 2022 plus a spread of 5 basis points for a total consideration of $1,019.23 per $1,000 of notes;

• $100 million of the $1 billion of floating-rate senior notes due Sept. 13, 2021 (Cusip: 606822AF1) for a total consideration of $1,015 per $1,000 of notes; and

• $449,999,000 of the $1.5 billion of 2.19% senior notes due Sept. 13, 2021 (Cusip: 606822AG9) with pricing set using the 1.375% U.S. Treasury due Jan. 31, 2022 plus a spread of 10 bps for a total consideration of $1,017.72 per $1,000 of notes; and

• $623,942,000 of the $3 billion 3.85% senior notes due March 1, 2026 (Cusip: 606822AD6) with pricing set using the 1.375% U.S. Treasury due Jan. 31, 2025 plus a spread of 50 bps for a total consideration of $1,140.26 per $1,000 of notes.

The total consideration for each series of notes includes an early tender payment of $50 per $1,000 of notes. Holders who tendered their notes by the early tender date, 5 p.m. ET on March 2, were eligible to receive the early tender premium. Holders will also receive accrued interest.

In addition, the company said it will accept for purchase $450,000 more of the 3.85% notes that were tendered after the early tender date for a late tender consideration of $1,090.26 per $1,000 of notes. Holders had also tendered $1 million more of the 2.19% notes, but as the cap had already been met for that series, none of those notes were accepted for purchase.

Following settlement on March 25, $2,375,608,000 of the 3.85% notes, $1,050,001,000 of the 2.19% notes, $700 million of the floaters due March 1, 2021, $1.85 billion of the 2.95% notes and $900 million of the floaters due Sept. 13, 2021 will remain outstanding.

The maximum series cap for each series of notes was set at $50 million for the floaters due March 1, 2021, $400 million for the 2.95% notes due 2021, $100 million for the floaters due Sept. 13, 2021, $450 million for the 2.19% notes due 2021 and $700 million for the 3.85% notes due 2026.

As previously reported, MUFG said it would purchase the notes on a prorated basis using a proration factor of about 45.6% for the floaters due March 1, 2021, 41.9% for the 2.95% notes due 2021, 15.4% for the floaters due Sept. 13, 2021, 44.8% for the 2.19% notes due 2021 and 90% for the 3.85% notes due 2026.

Notes are being accepted for purchase only in minimum denominations of $200,000 and integral multiples of $1,000 in excess thereof.

The offers are conditioned on MUFG’s issuance of a minimum aggregate principle amount of $2 billion of senior notes in a concurrent offering.

The dealer managers are Morgan Stanley & Co. LLC (800 624-1808 toll free and 212 761-1057 collect) and MUFG (877 744-4532 toll free and 212 405-7481 collect).

The information agent and tender agent is D.F. King & Co., Inc. (866 796-1291, 212 269-5550 for banks and brokers and mufg@dfking.com).

MUFG said it is making the tender offers 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 and its ability to meet applicable regulatory requirements relating to TLAC in Japan.

MUFG is a Tokyo-based bank.

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