Singapore’s DBS Bank buys floaters on prorated basis in tender offer

By Susanna Moon

Chicago, Jan. 5 – DBS Bank Ltd. said investors had tendered $690,471,000 of its $900 million of floating-rate subordinated notes due 2021.

The tender offer ended at 5 p.m. ET on Jan. 2.

The company will purchase the notes using a proration factor of about 79%, with settlement set for Jan. 8, according to a company press release.

Under the offer terms, where, as a result of the proration, less than $100,000 principal amount of notes would be returned to a holder, the issuer has decided to accept all of the holder’s tendered notes, the release noted.

The tendered notes tally remained unchanged since 5 p.m. ET on Dec. 10, the early tender date.

DBS Bank said on Dec. 11 the offer was 1.3 times oversubscribed as of the early tender deadline.

DBS Bank began the tender offer for up to $550 million principal amount of the notes on Nov. 19. The floaters are callable with step-up in 2016.

As previously announced, the total purchase price will be par for each $1,000 principal amount of notes tendered the early tender deadline.

The total payment includes an early tender premium of $20.00 per $1,000 of notes.

Those who tendered after the early deadline would have received $980 per $1,000 of notes.

The company also will pay accrued interest to the settlement date of Jan. 8.

The offer was a part of the issuer’s optimization of its capital structure under prevailing regulations and also provides liquidity to some noteholders, according to a previous press release.

Global Bondholder Services Corp. (banks and brokers call 212 430-3774 or 866 470-3900, fax 212 430-3775/3779, confirm fax by telephone 212 430-3774) was the depositary and information agent. DBS Bank Ltd. (65 6222 4261 or liabilitymanagement@dbs.com) and Citigroup Global Markets Inc. (collect 212 723-6106 or 800 558-3745) were the dealer managers.

DBS Bank is a Singapore-based financial services group.

© 2015 Prospect News.
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