Bancolombia gives results of tender offer for 6 1/8%, 5 1/8% notes

By Sarah Lizee

Olympia, Wash., Dec. 24 – Bancolombia SA announced the final tender results of the cash tender offer for its $259,088,000 outstanding 6 1/8% subordinated notes due 2020 and $1,103,361,000 outstanding 5 1/8% subordinated notes due 2022 for up to a maximum tender consideration of $750 million.

The offer was launched by Citigroup Global Markets Inc., as previously reported.

After the early tender time, 5 p.m. ET on Dec. 9, and by the expiration time, 11:59 p.m. ET on Dec. 23, the offeror accepted for purchase $47,000 more 6 1/8% notes and $4.46 million more 5 1/8% notes.

As previously reported, $81,364,000 of the 6 1/8% notes and $404,628,000 of the 5 1/8% notes were tendered by the early tender deadline.

Holders who tendered their notes at or before the early tender deadline are eligible to receive the total consideration. The total consideration per $1,000 principal amount is $1,029.25 for the 2020 notes and $1,065.00 for the 2022 notes. The total consideration includes an early tender payment of $30.00 per $1,000 principal amount.

Holders tendering after the early tender date will be eligible to receive per $1,000 principal amount $999.25 for the 2020 notes and $1,035.00 for the 2022 notes, or the total consideration less the early tender payment.

In addition, holders will receive accrued interest to but excluding the applicable settlement date.

Notes are being purchased according to acceptance priority level, with the 2020 notes having priority over the 2022 notes. However, notes tendered on or prior to the early tender date are being accepted for purchase in priority to other notes tendered after the early deadline, even if those notes tendered later have a higher acceptance priority level than the notes tendered earlier.

Had the aggregate purchase price payable for the notes tendered exceeded the offer cap, only the principal amount of notes that would result in the overall maximum tender consideration not being exceeded would be accepted for purchase. As a result, had the offer cap been met by the early tender date, holders who tendered notes after the early deadline would not have any notes accepted for payment regardless of acceptance priority level.

Tendered notes may be subject to proration.

Payment for all notes tendered by the early tender date was expected to be made on Dec. 13. Final settlement for any remaining tenders will be on Dec. 26.

Tenders may no longer be withdrawn.

Bancolombia noted that it is not making the tender offer. Tendered notes purchased on the early settlement date by Citigroup will be exchanged by Citigroup with Bancolombia for a decrease in the proceeds of some new notes to be issued in a new offering by the Bancolombia, according to the release.

The tender offer is conditioned on, among other things, pricing of the new notes.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and J.P. Morgan Securities LLC (866 846-2874 or 212 834-7279) are the dealer managers. Global Bondholder Services Corp. (212 430-3774 or 866 470-4200 or contact@gbsc-usa.com) is the information and tender agent.

The lender is based in Medellin, Colombia.

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