Unione di Banche tenders for €300 million step-up floaters due 2018

By Susanna Moon

Chicago, Sept. 9 - Unione di Banche Italiane Scpa, also known as UBI Banca, said it began a tender offer for its €300 million of outstanding callable step-up floating-rate subordinated notes due Oct. 30, 2018.

The bank is offering to buy the notes at 93% of par plus accrued interest to but excluding the settlement date, according to a press release.

The outstanding principal amount includes €118.35 million held by the purchaser and its subsidiaries as of Sept. 9, which the bank plans to cancel after completion of the offer, the bank said.

The floaters were issued Oct. 30, 2006.

The offer is part of the bank's efforts to manage its outstanding liabilities while considering prevailing market conditions and regulatory developments, the release noted.

The bank said it does not plan to exercise its call on the interest payment date in October.

UBI Banca said it has entered into a supplemental trust, however, so that, effective on the interest payment date in October, the terms will be modified so that notes that remain outstanding at that time will change from being subordinated notes to becoming senior notes.

The tender offer will end at noon ET on Sept. 17.

Societe Generale (attn: liability management, +44 20 7676 7579, e-mail liability.management@sgcib.com) is the dealer manager. Lucid Issuer Services Ltd. (attn: Paul Kamminga/Thomas Choquet, +44 (0) 20 7704 0880, e-mail: ubibanca@lucid-is.com) is the tender agent.

Unione di Banche is a Bergamo, Italy-based banking group.

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