BNP tenders for Fortis' €3 billion of convertible hybrid securities

By Jennifer Chiou

New York, Jan. 26 - BNP Paribas announced a tender offer for the €3 billion of convertible and subordinated hybrid equity-linked securities (Cashes) issued by Fortis Bank NV-SA in December 2007.

According to a company notice, the securities were part of the funding of Fortis Bank when BNP Paribas acquired Fortis in May 2009.

The offer is set to end at noon ET on Jan. 30.

Pricing will be determined at 1 p.m. ET on the expiration date. The purchase price range is between 45% and 47.5% of the principal amount, or between €112,500 and €118,750 per €250,000 principal amount.

BNP Paribas said that it will exercise the exchange option of purchased Cashes in order to exchange them into the underlying Ageas shares currently pledged and held by Fortis Bank. After the exchange, the acquired Cashes will be extinguished.

The Paris-based financial company will also pay accrued interest to Feb. 2, the settlement date.

The offer is contingent on tenders from holders of at least €1.5 billion of the securities.

Questions may be directed to BNP's centralizing agent at equity.linked@uk.bnpparibas.com.

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