Munich Re launches tender offer, consent bid for 7.45% notes due 2026

By Susanna Moon

Chicago, July 21 - Munich Re America Corp. said it began a cash tender offer for all of its outstanding $500 million of 7.45% senior notes due 2026.

The company also is soliciting consents from at least a majority of holders to amend the reporting covenant in the indenture.

Holders who tender their notes must deliver consents and vice versa.

For each $1,000 principal amount, the total payment will be based on the yield on the 5% U.S. Treasury note due May 15, 2037 plus a fixed spread of 250 basis points.

The tender offer will expire at midnight ET on Aug. 15. The consent deadline is 5 p.m. ET on Aug. 1.

Holders who tender their notes by the consent deadline will receive a fee of $30 per $1,000 note.

The company will pay accrued interest to the payment date.

The notes will price at 2 p.m. ET on the secnd business day before the expiration date.

The offer is subject to the satisfaction of the minimum tender and supplemental indenture conditions.

Deutsche Bank Securities Inc. (866 627-0391, 212 250-2955, 44 0 20 7545-8011 or email at liability.management@db.com) is the dealer manager and consent solicitation agent.

Global Bondholder Services Corp. (866 470-3700 or 212 430-3774) is the depositary agent and information agent.

Munich Re is a Princeton, N.J.-based reinsurance company.

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