Espirito Santo ends tender, exchange for preferreds, 6 7/8% notes

By Jennifer Chiou

New York, Nov. 9 - Espírito Santo International SA announced the wrap of the tender and exchange offer for Espirito Santo Financial Group SA's €400 million of 6 7/8% subordinated notes due 2019 and ESFG International Ltd.'s €400 million of series A non-cumulative guaranteed step-up preferred securities, which have a subordinated guarantee from Espirito Santo Financial.

At the tender deadline, holders had tendered €146.65 million of the preferreds along with €26.7 million of the notes.

Espirito Santo added that it has increased the tender cap to €76,011,000 from the original maximum cash purchase amount of €75 million. All the tendered notes will be accepted. Settlement is scheduled for Nov. 11. Accrued distributions on the preferreds will be €3,642,104.92, and accrued interest on the notes will be €105,322.74.

Following settlement, the company said that it will submit into the exchange offer the tendered securities. After including the preferreds and notes tendered in the exchange offer at the early deadline, this will result in €268.5 million liquidation preference of the preferreds and €48.9 million of the notes having been validly tendered for exchange.

According to a news release, the total figure represents 79.35% of the €400 million maximum liquidation preference/principal amount for the exchange offer.

The cash tender offer and exchange offer for the securities ended at 10 a.m. ET on Nov. 9. The tender offer had previously been extended by one day.

At the early exchange deadline, holders had tendered €121.85 million liquidation preference of the preferreds and €22.2 million of the notes.

Banco Espírito Santo de Investimento, SA and Nomura International plc were the dealer managers. Lucid Issuer Services Ltd. was the tender agent (44 20 7704 0880; attn: David Shilson/Sunjeeve Patel; esfg@lucid-is.com).

Espirito Santo Financial Group is an integrated financial services group and the Kirchberg, Luxembourg-based investment vehicle for the financial interests of the Espirito Santo Group.

© 2015 Prospect News.
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