Bawag wraps tender offer, to buy €310.6 million of tier 2 notes at 99

By Mary-Katherine Stinson

Lexington, Ky., Nov. 27 – Bawag Group AG concluded its tender offer for any and all of its €400 million outstanding tier 2 callable subordinated notes due March 2029 with a first call date on March 26, 2024 (ISIN: XS1968814332), according to a notice.

Bawag will accept all €310.6 million of the tendered notes for purchase at 99, plus accrued interest.

As previously reported, the tender offer is not subject to a maximum acceptance amount but is conditioned on the company completing an offering of new notes. The company said it plans to issue €400 million tier 2 callable subordinated notes due 2034.

Holders who participated in the tender offer and also wished to subscribe for the new notes may be given priority in the allocation of the new notes.

The company said the purpose of the tender offer and the planned issuance of new notes is, among other things, to proactively manage its tier 2 capital. The tender offer also gives noteholders the opportunity to sell their current holdings in the notes prior to their first call date on March 26 and to subscribe to the new notes. Notes purchased under the tender offer are expected to be canceled.

Tenders could not be withdrawn except in limited circumstances.

The offer expired at 11 a.m. ET on Nov. 22.

Settlement is expected to be on Nov. 27.

The dealer managers for the tender offer are Morgan Stanley Europe SE (+44 20 7677 5040; liabilitymanagementeurope@morganstanley.com) and UBS Europe SE (+44 20 7568 1121; ol-liabilitymanagement-eu@ubs.com).

The tender agent is Kroll Issuer Services Ltd. (+44 20 7704 0880; attn.: David Shilson / Alessandro Zorza; bawag@is.kroll.com; https://deals.is.kroll.com/bawag).

Bawag is a retail and corporate lender based in Vienna.

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