Arion Bank buys €155.56 million 2.5% notes in capped one-week tender

By Susanna Moon

Chicago, Dec. 18 – Arion Bank hf said holders had tendered €155,562,000 of its €300 million of outstanding 2.5% notes due 2019 in the offer that ended at 11 a.m. ET on Dec. 17.

The bank has decided to accept all of the tendered notes with no pro rata scaling, according to a bank notice.

After settlement, there will be €144,438,000 of the notes left outstanding.

The bank said on Dec. 10 that it was tendering for up to €150 million of the notes with pricing to be set using a fixed purchase yield of negative 0.05% for a price of 100.888% of par assuming a settlement date of Dec. 20.

Holders also will receive accrued interest.

“The offer is being made as part of the bank’s commitment to the active management of its balance sheet,” according to a previous notice.

The bank said it reserved the right to accept “significantly” more or less than the cap.

The dealer managers are J.P. Morgan Securities plc (+44 20 7134 2468 or emea_lm@jpmorgan.com) or Nomura International plc (+44 20 7103 6597 or liability.management@nomura.com). The tender agent is Lucid Issuer Services Ltd (+44 20 7704 0880 or arionbank@lucid-is.com).

Arion is a Reykjavik, Iceland-based bank.

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