Banco de Sabadell wraps oversubscribed tender offer for four series

By Jennifer Chiou

New York, Feb. 11 - Banco de Sabadell, SA announced the close of its tender offer for a maximum of €491.8 million of four series of securities. The tender cap was increased from €483 million after participation exceeded the cap.

The offers expired at 11 a.m. ET on Feb. 10. They launched on Jan. 31.

Holders will receive:

• 78% of par for the bank's €154.2 million of series I/2006 step-up fixed/floating-rate non-cumulative perpetual preferred securities. Accepted tenders came in at €105 million;

• 85% of par for Banco Guipuzcoano, SA's €125 million of floating-rate subordinated securities due March 21, 2016. Accepted tenders amounted to €23.7 million; and

• 85% of par for Banco de Sabadell's €716.6 million of series I/2006 subordinated securities (Obligaciones Subordinadas) due May 25, 2016. Accepted tenders, with a proration factor of 98.05%, were tallied at €363.1 million.

The bank also offered 90% of par for its €500 million of series I/2010 subordinated securities due April 26, 2020, but it did not accept any of these securities.

The securities are listed in order of acceptance priority level.

Holders will also receive accrued interest to Feb. 15, the anticipated settlement date.

As already stated, the maximum principal amount of securities to be purchased was determined according to the proceeds the bank received from the issuance of 126,363,082 new shares at an issue price of €3.25 each.

As previously noted, Banco Guipuzcoano's floating-rate securities become callable on March 21, and Banco de Sabadell's series I/2006 subordinated securities become callable on May 25. The bank said that any decision about whether to call these securities will be taken on an economic basis.

The dealer manager was UBS Ltd. (+44 0 20 7567 0525 or mark-t.watkins@ubs.com), and the tender agent was Lucid Issuer Services Ltd. (contact David Shilson or Sunjeeve Patel at +44 0 20 7704 0880 or Sabadell@lucid-is.com).

Banco de Sabadell is a banking group based in Sabadell, Spain.

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