Espirito Santo wraps exchange offer for preferreds, 6 7/8% notes

By Marisa Wong

Madison, Wis., Nov. 15 - Espirito Santo International SA announced the final results of the exchange offer for Espirito Santo Financial Group SA's €400 million of 6 7/8% subordinated notes due 2019 and ESFG International Ltd.'s €400 million of series A non-cumulative guaranteed step-up preferred securities, which have a subordinated guarantee from Espirito Santo Financial.

Holders were invited to exchange a total of up to €400 million of subordinated notes or preferred securities for ordinary shares of Espirito Santo Financial. The exchange offer expired at 10 a.m. ET on Nov. 14.

As of the expiration time, holders offered for exchange €48.9 million of 6 7/8% subordinated notes and €325.75 million of preferred securities. All of the offered notes and preferreds, which represent 93.66% of the offer cap, will be accepted for exchange.

Espirito Santo Financial will issue 27,146,650 new shares and will pay a total of €8,602,149.66 of distributions for the preferreds and accrued interest totaling €284,749.02 for the notes.

The exchange offer will settle on Nov. 21.

Espirito Santo Financial previously completed a tender offer for €76,011,000 - increased from €75 million - of the same preferred securities and subordinated notes. Holders had tendered €146.65 million of the preferreds along with €26.7 million of the notes. The company accepted all the tendered notes and some of the tendered preferreds. Settlement for the tender offer was on Nov. 11.

Banco Espirito Santo de Investimento, SA (+351 21 319 6904) and Nomura International plc (+44 20 7103 5652) were the dealer managers for the exchange offer. Lucid Issuer Services Ltd. was the tender agent.

Espirito Santo Financial Group is an integrated financial services group and is the Kirchberg, Luxembourg-based investment vehicle for the financial interests of the Espirito Santo Group.

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