Banco do Brasil gives early results of offer for 9% junior subordinated notes

By Mary-Katherine Stinson

Lexington, Ky., Oct. 19 – Banco do Brasil SA, acting through its Grand Cayman branch, announced the early results of its offer to purchase up to $1 billion purchase price of its $2.12 billion outstanding 9% perpetual non-cumulative junior subordinated notes (Cusips: 05958AAL2, P3772WAF9), according to multiple releases.

As of the early tender deadline of 5 p.m. ET on Oct. 18, the bank had received valid tenders from the registered holders of $746,812,000 in aggregate principal amount of notes. The bank will accept all the tendered notes for purchase.

Early settlement is scheduled for Oct. 20. The total cash payment to purchase the accepted notes on the early settlement date will be $757,080,665, excluding accrued interest.

As previously reported, the bank is offering a total consideration of $1,013.75 per $1,000 note, inclusive of a $30 early tender premium that will only be paid to noteholders who tendered by the early deadline. Otherwise, noteholders will receive $983.75 per note.

Interest will also be paid to the applicable settlement date. The aggregate total consideration excludes interest.

Tenders are subject to proration.

The withdrawal deadline has passed, and tenders may no longer be withdrawn.

The offer will expire at 5 p.m. ET on Nov. 2.

The final settlement date is on the calendar for Nov. 6.

The purpose of the tender offer is to increase efficiency of the bank’s capital structure and reduce its interest expense.

There is no letter of transmittal for the tender offer.

The dealer managers for the tender offer are UBS Securities LLC (212 713-4715), Citigroup Global Markets Inc. (800 558-3745, 212 723-6106) and J.P. Morgan Securities LLC (866 846-2874, 212 834-7279).

D.F. King & Co., Inc. is the information and tender agent for the offer (800 628-8528, 212 269-5550, bdory@dfking.com).

The government-owned bank is based in Brasilia, Brazil.

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