ING Bank wraps €4.7 billion exchange offer with 55% participation rate

By Jennifer Chiou

New York, Nov. 15 - ING Bank announced the successful completion of its exchange offer for €4.7 billion of seven series of subordinated debt into CRD-IV eligible tier 2 securities. Holders of 55% of the notes participated in the offer.

And, as previously announced, the bank called its $2 billion of 8.5% hybrid tier 1 securities for redemption on Dec. 15.

The purchase prices and participation rates for the notes covered by the exchange offer are as follows:

• 99.75 for the €1 billion of floating-rate notes due March 18, 2016 with a current coupon of Euribor plus 67.5 basis points and participation of 60%;

• Par for the €1 billion of 4.625% notes due March 15, 2019 with a reset rate of Euribor plus 144 bps and participation of 46%;

• 99.25 for the $1.25 billion of floaters due May 23, 2016 with a coupon of Libor plus 67.5 bps and participation of 53%;

• 99 for the $100 million of floaters due June 8, 2016 with a coupon of Libor plus 67.5 bps and participation of 0%;

• 98.75 for the $200 million of floaters due Sept. 26, 2016 with a coupon of Libor plus 71 bps and participation of 52%;

• 98.75 for the $200 million of floaters due Nov. 21, 2016 with a coupon of Libor plus 70 bps and participation of 61%; and

• 98.5 for the $2 billion of floaters due July 3, 2017 with a coupon of Libor plus 70 bps and participation of 60%.

In exchange for the tendered notes, the bank will issue either new euro- or dollar-denominated subordinated notes due Nov. 21, 2018.

For the euro notes, interest initially will be the five-year euro mid-swap rate plus 245 bps and will reset to a reset mid-swap rate plus 245 bps.

For the dollar notes, interest initially will be the five-year dollar mid-swap rate plus 270 bps and will reset to a reset mid-swap rate plus 270 bps.

ING said that the exchange offer will result in an after-tax gain of about €20 million.

Merrill Lynch International was the joint dealer manager and structuring adviser. Credit Suisse Securities (Europe) Ltd., HSBC Bank plc, ING Bank NV and UniCredit Bank AG were the joint dealer managers. The exchange agent was Lucid Issuer Services Ltd. (ing@lucid-is.com).

The Amsterdam-based financial services company began the offer on Nov. 6.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.