Hungary purchases all 4.4% bonds exchangeable for Gedeon Richter stock

By Angela McDaniels

Tacoma, Wash., Dec. 9 - Magyar Nemzeti Vagyonkezelo Zrt. (the Hungarian National Asset Management Inc.) has purchased all €833.3 million of outstanding 4.4% bonds due 2014 exchangeable for Gedeon Richter plc shares, according to an announcement.

On Dec. 2, National Asset Management said it would redeem any bonds that remained outstanding after its tender offer.

The tender offer price was €103,500 per €100,000 principal amount of bonds plus €867.95 of accrued interest. The settlement date was Dec. 6.

At a bondholder meeting on Nov. 28, an extraordinary resolution passed that gave the issuer the option to redeem or purchase all, but not some only, of the bonds that remained outstanding once the offer was completed. It had to give at least three days' notice, and it had planned to give that notice Dec. 2.

Gedeon Richter tendered €52 million of bonds in the offer and subscribed for an equal amount of Hungarian National Asset Management's new 3.375% exchangeables due 2019.

As previously reported, the issuer priced €903.8 million of the new exchangeables with an initial conversion premium of 35% on Nov. 6. The proceeds were used to repurchase the old exchangeables.

Deutsche Bank AG, London Branch and UniCredit Bank AG, London Branch were the joint dealer managers.

Gedeon Richter is a pharmaceutical company located in Budapest, Hungary.

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