Arion Bank tenders for 0.75%, 1.625% notes with €200 million target

By Wendy Van Sickle

Columbus, Ohio, Nov. 15 – Arion Bank hf began a tender offer for its €300 million 0.75% notes due 2020 and €500 million of 1.625% notes due 2021, according to a news release.

The bank is targeting a total acceptance amount of €200 million, but said it may accept significantly more or less of the notes, or none at all.

The 2020 notes will have acceptance priority over the 2021 notes.

The purchase price for the 2020 notes will be based on a fixed purchase yield of negative 30 basis points.

For the 2021 notes, the price will be set at 6 a.m. ET on Nov. 25 based on mid-swaps plus 55 bps.

The offer will expire at 11 a.m. ET on Nov. 22.

Settlement is expected on Nov. 27.

Tenders must be submitted in minimum amounts of €100,000 and in increments of €1,000 in excess thereof.

The bank said the purpose of the tender offer is to actively manage its balance sheet.

The dealer managers are Merrill Lynch International (+44 20 7996 5420 or DG.LM-EMEA@bofa.com) and NatWest Markets NV (+44 20 7678 5222 or liabilitymanagement@natwestmarkets.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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