Banco do Brasil begins exchange offer for $1.5 billion 8½% perpetuals

By Susanna Moon

Chicago, Sept. 24 – Banco do Brasil SA, Grand Cayman Branch, said it began an offer to exchange its outstanding $1.5 billion of 8½% perpetual non-cumulative junior subordinated securities.

In exchange, the bank is offering new 8½% perpetual non-cumulative junior subordinated Securities, according to a press release.

The total exchange price will be $1,180 per $1,000 principal amount of notes tendered by 5 p.m. ET on Oct. 6, the early exchange date.

The total exchange value includes a $30.00 early payment per $1,000 of notes.

Those who tender their notes for exchange after the early deadline will receive the total amount less the early payment, or $1,150 per $1,000 of notes.

The bank also will pay accrued interest up to but excluding the settlement date.

The exchange offer will end at 11:59 p.m. ET on Oct. 21.

The issuer’s obligation to accept any tendered notes for exchange is conditioned on a minimum of $500 million principal amount of the new notes being issued in the exchange offer, the release noted.

The information agent and exchange agent is D.F. King & Co., Inc. (banks and brokers 212 269-5550, others 877 283-0319, attn: Krystal Scrudato, email bb@dfking.com).

The exchange offer is only being made to holders who are qualified institutional buyers under Rule 144A or persons other than U.S. persons under Regulation S.

Banco do Brasil is a lender based in Brasilia, Brazil.

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