Credit Logement begins tender offer for undated notes, 5.454% notes

By Angela McDaniels

Tacoma, Wash., Nov. 13 – Credit Logement SA began a tender offer for its €800 million undated deeply subordinated noncumulative fixed-to-floating-rate notes and €500 million 5.454% ordinary subordinated notes due 2021, according to a company news release.

The company is offering to repurchase any and all of the undated notes and a maximum amount of the 5.454% notes.

The tender price for the undated notes is 91.5%. The tender price for the 5.454% notes will be set by reference to a tender yield of negative 0.3%. Assuming a settlement date of Nov. 28, it would be 118.642%.

Holders will also receive accrued interest up to but excluding the settlement date.

The company plans to finance the tender offer with proceeds of a new issue of euro-denominated ordinary subordinated fixed-rate resettable notes. The denominated of the new notes will be €100,000.

Noteholders who wish to subscribe for new notes in addition to participating in the tender offer may elect to receive priority in the allocation of the new notes.

The tender offer cap on the 5.454% notes will be determined on the pricing date of the new notes, which is expected to be Nov. 21.

The tender offer will end at 10 a.m. ET on Nov. 20.

Notes purchased in the tender offer will be canceled.

The company said the purpose of the tender offer is to improve its debt maturity profile and reduce the total cost of its hybrid debt.

The company also announced its intention to withdraw the undated notes and the 5.454% notes from trading on the regulated market of the Luxembourg Stock Exchange and to have them admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange.

The dealer managers are BNP Paribas (+44 20 7595 8668 or liability.management@bnpparibas.com), Credit Agricole Corporate and Investment Bank (+44 207 214 5733 or liability.management@ca-cib.com) and Societe Generale (+33 1 42 13 32 40 or liability.management@sgcib.com). Societe Generale is also acting as global coordinator and structuring adviser.

The tender agent is Societe Generale (+33 2 51 85 52 43 or nantes.gis-op-titres@sgss.socgen.com). The information agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or sebastopol@lucid-is.com).

Paris-based Credit Logement offers loans, mortgage, real estate sale, loan redemption and cash payment acquisition services.

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