Achmea Hypotheekbank tender offer oversubscribed at early deadline

By Angela McDaniels

Tacoma, Wash., Dec. 6 - Achmea Hypotheekbank NV announced the results of its tender offer for up to $900 million of its $2.75 billion of fixed-rate notes due 2014 and $500 million of floating-rate notes due 2014 through the early tender time, 10 a.m. ET on Dec. 6.

As of that time, holders had tendered $2,301,434,000 principal amount, or 83.69%, of the first-priority fixed-rate notes and $454.5 million principal amount, or 90.9%, of the second-priority floating-rate notes.

Because the amount of first-priority notes tendered so far exceeds the $900 million cap, no second-priority notes will be accepted. The first-priority notes remain subject to proration, according to a company news release.

The offer began on Nov. 22 and will expire at 11:59 p.m. ET on Dec. 20. The settlement date is expected to be Dec. 21.

The total consideration is $1,060.58 for each $1,000 principal amount of first-priority notes tendered. This includes an early tender payment of $30.00 for each note tendered by the early tender time.

Holders will also receive accrued interest.

The total consideration was set on Dec. 6 by reference to the 0.375% Treasury due Nov. 15, 2014 plus a spread of 65 basis points. The reference yield is 0.399%.

The total consideration for the second-priority notes was set when the offer began. It was $1,007.50 per $1,000 principal amount of notes and would have included a $30.00 early tender payment for each note tendered by the early tender time.

Each series of notes is guaranteed by the State of the Netherlands.

The dealer managers are Deutsche Bank AG, London Branch (212 250-2955, 866 627-0391 or 44 20 7545 8011) and J.P. Morgan Securities LLC (212 834-4811 or 866 834-4666). The depositary and information agent is Global Bondholder Services Corp. (212 430-3774 for banks and brokers, others call 866 470-3900).

Achmea Hypotheekbank provides mortgages and is based in Tilburg, the Netherlands. It is a subsidiary of Achmea Bank Holding NV, which in turn is a subsidiary of Achmea BV, an integrated financial services group based in Zeist, the Netherlands.

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