Achmea prices tender for first-priority notes; offer oversubscribed

By Susanna Moon

Chicago, Dec. 10 - Achmea Hypotheekbank NV said it priced the cash tender offer for up to $900 million principal amount of its $1.85 billion of outstanding fixed-rate notes due 2014 and its $500 million of floating-rate notes due 2014, both guaranteed by the Netherlands.

The notes are listed in order of priority acceptance level.

The total purchase price for the first-priority notes will be $1,051.74 for each $1,000 principal amount of notes tendered by 10 a.m. ET on Dec. 10, the early tender date.

Pricing for the fixed-rate notes was set at 10 a.m. ET on Dec. 10 using the bid-side price of the 0.25% Treasury note due Oct. 31, 2014 plus fixed spread of 15 basis points. The reference yield was 0.24%.

The tender offer payment is $1,021.74 per $1,000 of notes, or the total payment less the early tender payment.

As of 10 a.m. ET on Dec. 10, investors had tendered $1,095,932,000, or 59.24%, of the fixed-rate notes and $254,450,000, or 50.89%, of the floaters.

Tendered notes will be accepted in the order of the priority acceptance levels and, because the amount of tendered fixed-rate notes exceeds the offer cap, Achmea will not accept any second-priority notes for purchase, according to a company press release.

In addition, tendered first-priority notes will be purchased on a prorated basis.

More offer details

As noted before, the total payment for the floaters would have been $1,005.75 per $1,000 principal amount of floaters tendered by the early tender date.

The offer was scheduled to end at 11:59 p.m. ET on Dec. 24, with settlement slated for Dec. 27. The offer began on Nov. 27.

Holders who tendered their notes by the early tender deadline will receive an early tender payment of $30.00 for each $1,000 principal amount of notes accepted for purchase. Those who tender after the early date would have received the tender offer payment.

Citigroup Global Markets Ltd. (800 558-3745, 212 723-6106 collect in the U.S. or +44 20 7986 8969 outside the U.S.), Deutsche Bank AG, London Branch (866 627-0391, 212 250-2955 collect in U.S. and +44-20 7545 8011 outside U.S.) and Societe Generale (212 278-6964 collect in U.S. and +44 207 676-7442 outside U.S.) are the dealer managers, and Global Bondholder Services Corp. (866 736-2200 or collect 212 430-3774) is the depositary and information agent.

The banking subsidiary of Achmea Holding NV is based in Zeist, the Netherlands.

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