Banco Nacional de Costa Rica tender oversubscribed at early deadline

By Sarah Lizee

Olympia, Wash., March 15 – Banco Nacional de Costa Rica announced the early results of its cash tender offer for up to $150 million of its $500 million 5 7/8% notes due April 25, 2021, according to a Friday news release.

As of the early tender time of 5 p.m. ET on March 14, $236,552,000 of tenders were received and not validly withdrawn by holders.

Because purchasing all the notes validly tendered prior to or at the early tender time would cause the maximum tender amount to be exceeded, the bank will not accept all the notes tendered prior to or at the early tender time. Instead, the bank will accept the notes for purchase on a prorated basis, using a proration factor of about 56.7%.

As a result, the bank accepted to purchase $149.8 million of the notes.

As previously reported, the company is offering a total consideration of $1,015 for each $1,000 principal amount to holders who tendered by the early deadline.

The total consideration includes a $30 early tender premium, which will not be paid to holders who tender after the early deadline.

The offer will expire at 11:59 p.m. ET on March 28. The bank said in its Friday update that it does not expect to accept any more tendered notes.

Holders will also be paid accrued interest.

Early settlement is slated for March 18.

D.F. King & Co., Inc. (866 828-9088, 212 269-5550 or bncr@dfking.com) is the tender agent and information agent.

J.P. Morgan Securities LLC (866 846-2874 or 212 834-7279) and BofA Merrill Lynch (888 292-0070 or 646 855-8988) are the dealer managers.

The bank is based in San Jose, Costa Rica.

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