NIBC completes oversubscribed tender for government-guaranteed notes

By Jennifer Chiou

New York, March 6 - NIBC Bank NV announced the final results in its cash tender offer for a portion of its $2 billion of fixed-rate notes due Dec. 2, 2014 and its $1 billion of floating-rate notes due Dec. 2, 2014. Both the fixed-rate notes and the floating-rate notes are guaranteed by the Netherlands.

The bank received overall tenders for $1,067,808,000 of notes and accepted $802,892,000 of those tendered securities, which is roughly equal to the dollar equivalent of €616 million, the offer cap. That cap was increased previously from the original €500 million.

As of 5 p.m. ET on Feb. 19, the early deadline, holders had tendered $942,343,000 of the fixed-rate notes and $125,465,000 of the floaters.

NIBC accepted tenders for $708,604,000 of the fixed-rate notes and $94,288,000 of the floaters. The proration factor for both series was 75.8%.

The total consideration for each $1,000 principal amount of fixed-rate notes is $1,042.01. It was determined using a repurchase spread of 10 basis points and the yield based on the bid-side price of the 0.25% U.S. Treasury due Jan. 31, 2015. Pricing was set on Feb. 20.

The total consideration for each $1,000 principal amount of floating-rate notes is $1,006.

The total consideration for both types of notes includes an early tender payment of $10.00 per $1,000 note.

The company will pay accrued interest to but excluding the settlement date, which is expected to be March 7.

On Feb. 5, NIBC also announced an offer outside the United States to purchase for cash up to €500 million of euro-denominated notes due April 2014 guaranteed by the Netherlands. The euro tender was to expire on Feb. 12.

The dollar equivalent of the cap was calculated using the dollar/euro exchange rate at or around 11 a.m. ET on March 5 for an exchange rate of $1.3034 per euro.

The offer for up to the dollar equivalent of €616 million of government-guaranteed notes expired at 11:59 p.m. ET on March 5.

The offer was not contingent upon a minimum amount of notes being tendered.

Citigroup Global Markets Ltd. (attn.: liability management group, +44 207 986 8969, 800 558-3745 or 212 723-6106, liabilitymanagement.europe@citi.com) and Royal Bank of Scotland plc (contact RBS Securities Inc., attn.: liability management team, +44 207 085 8056/9972, 877 297-9832 or 203 897-4825) were the dealer managers.

Global Bondholder Services Corp. (attn.: corporate actions, 866 387-1500) was the U.S. depositary and information agent, and Lucid Issuer Services Ltd. (attn.: Paul Kamminga, +44 20 7704 0880, nibc@lucid-is.com) was the non-U.S. depositary and information agent.

NIBC is based in Amsterdam.

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