Brazil’s Banrisul buys back $251.82 million 7 3/8% notes via tender

By Marisa Wong

Morgantown, W.Va., Oct. 13 – Banco do Estado do Rio Grande do Sul SA announced the final results of its tender offer for up to $275 million of its $775 million of outstanding 7 3/8% subordinated notes due 2022.

As of 5 p.m. ET on Sept. 25, the early tender date, the company had received tenders for $248.96 million of the notes. The bank accepted all of the early tendered notes for purchase, according to a press release.

Between the early deadline and 11:59 p.m. ET on Oct. 9, the expiration of the offer, holders tendered an additional $2,855,000 of the notes. The bank will accept all of these tendered notes for purchase.

The purchase price was $800 per $1,000 principal amount of early tendered notes. This included an early tender premium of $30 per $1,000 principal amount.

The total consideration paid for the early tender notes was $199,168,000. The early settlement date was Sept. 30.

The purchase price for the notes tendered after the early deadline is $2,198,350. The final settlement date is Oct. 15.

Holders will also receive accrued interest.

As previously announced, if holders had tendered more than $275 million of notes by the early tender date, then the bank would have accepted for purchase the notes tendered at or prior to the early tender date on a prorated basis and would not have accepted for purchase any notes tendered after the early tender date.

If the offer had not been oversubscribed as of the early tender date but was oversubscribed as of the expiration date, then the bank would have first accepted for purchase all notes tendered by the early tender date and then notes tendered after the early tender date on a prorated basis.

To ensure the return of notes in minimum principal amounts of $200,000 and integral multiples of $1,000 above $200,000, the bank was prepared to make adjustments downward to the nearest $1,000 principal amount, or if applicable, the minimum denomination of $200,000, with respect to each holder tendering notes.

Holders who tendered less than all their notes had to continue to hold notes in authorized denominations.

The dealer manager is Deutsche Bank Securities Inc. (212 250-7527 for 855 287-1922). The tender agent and information agent is D.F. King & Co., Inc. (212 269-5550 or 877 283-0320).

Banrisul is a lender based in Porto Alegre, Brazil.

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