The Banco Montepio has announced the results of its public tender offer for the early redemption of senior bonds issued under the medium and long-term debt issuance program.
The total amount validly delivered and accepted for repurchase was 187.7 million euros, equivalent to 93.85% of the total issued, at a repurchase price of 102.875% – meaning that for every 100,000 euros in bonds, the bank pays 102,875 euros.
Having exceeded the threshold of 75% of bonds repurchased and redeemed early, Banco Montepio will exercise the contractual clause allowing for the early repayment of all remaining bonds.
With the total repayment of the 12.3 million euros in outstanding bonds, the bank aims to “simplify the capital structure and reduce administrative and operational burdens.”
Banco Montepio added that it expects to settle this transaction on Wednesday, June 25, with the bonds being canceled and not reissued.
The offer was conducted with the support of Natwest Markets as the structuring agent and ABN Amro Bank, Banco Santander, Crédit Agricole Corporate and Investment Bank, and UBS Europe serving as dealer managers.
