Intesa Sanpaolo completes exchange offer for four series of notes

By Jennifer Chiou

New York, Nov. 7 - Intesa Sanpaolo SpA said it wrapped its exchange offer for several series of subordinated notes at 11 a.m. ET on Nov. 6.

All in all, the company obtained tenders for €2,181,405,875 of the bonds and has accepted €2,168,406,875 of those notes.

The new five-year notes to be issued in the exchange offer pay interest of 4% per year, corresponding to the five-year euro mid-swap rate plus 310 basis points calculated on Nov. 7.

Intesa said it accepted tenders for the following:

• £244.65 million of its £250 million of lower tier II subordinated fixed-to-floating notes due November 2017 with an exchange price of 98.5% and an exchange ratio of 98.54%. The principal amount of new bonds for this series is €300,625,000.

According to a filing with the London Stock Exchange, the FX rate applied to the bonds due November 2017 is 1.2475;

• €529.8 million of its €642,956,000 of floating-rate subordinated notes due 2018 with a proration factor of 82.56%, an exchange price of 93.75% and an exchange ratio of 93.78%. The principal amount of new bonds for this series is €496.71 million;

• €637.95 million of its €807.55 million of lower tier II subordinated fixed-to-floating notes due 2018 with a proration factor of 82.4%, an exchange price of 94.5% and an exchange ratio of 94.53%. The principal amount of new bonds for this series is €602,875,000; and

• €332.25 million of its €412.7 million of fixed-to-floating callable lower tier II subordinated notes due 2018 with a proration factor of 82.4%, an exchange price of 93.5% and an exchange ratio of 93.53%. The principal amount of new bonds for this series is €310,696,000.

Settlement is slated for Nov. 9.

New notes

The exchange notes mature on Nov. 9, 2017 and were priced at 99.964.

The yield to maturity is equal to 4.008% per year.

Intesa Sanpaolo said it will issue a total of €1,710,906,000 aggregate principal amount of the new bonds (ISIN: XS0852993285).

The company will also pay accrued interest for accepted bonds.

The dealer managers were Banca IMI SpA (attn: debt capital markets dcm.fig@bancaimi.com or 39 02 7261 5362), Deutsche Bank AG, London Branch (attn: Liability Management, liability.management@db.com or call 44 20 7545 8011) and Merrill Lynch International (attn: Liability Management/ John M. Cavanagh/ Tommaso Gros-Pietro, john.m.cavanagh@baml.com / tommaso.gros-pietro@baml.com or 44 20 7995 3715/ 2324).

Lucid Issuer Services Ltd. (attn: Sunjeeve Patel/ Paul Kamminga, 44 20 7704 0880 or intesa@lucid-is.com) was the tender agent.

The financial services company is based in Turin, Italy.

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