Allianz sets €1 billion cap in tender for 4.75% fixed-to-floaters

By Wendy Van Sickle

Columbus, Ohio, Sept. 17 – Allianz Finance II BV set the maximum purchase consideration at €1 billion in its tender offer for its €2 billion of 5.75% guaranteed subordinated fixed-to-floating callable bonds due 2041 guaranteed on a subordinated basis by Allianz SE.

The offer was announced on Sept. 16.

The offer will be funded through a proposed new issue of euro-denominated subordinated notes.

The purchase price will be the value of all remaining payments of principal and interest on the notes up to and including the first call date of the notes, discounted to the settlement date at a discount rate equal to the negative 0.15% purchase yield, minus accrued interest.

Should the notes settle on Sept. 26, as expected, the purchase price will be 110.533. The price will be recalculated if the settlement date changes.

If the amount tendered exceeds the maximum acceptance amount, the company will scale the tender offer.

The deadline for valid tender instructions is 11 a.m. ET on Sept. 23.

Merrill Lynch International is the structuring adviser and dealer manager (+44 20 7996 5420, DG.LM_EMEA@baml.com).

Dealer managers also include BNP Paribas (+44 207 595 8668, liability.management@bnpparibas.com), Citigroup Global Markets Ltd. (+ 44 20 7986 8969, liabilitymanagement.europe@citi.com), Commerzbank Aktiengesellschaft (+49 69 136 59920, liability.management@commerzbank.com) and Deutsche Bank AG, London Branch (+44 0 207 545 8011).

The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, allianz@lucid-is.com).

Allianz is a Munich-based financial services company.

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