NIBC Bank raises tender cap in offers for government-guaranteed notes

By Jennifer Chiou

New York, Feb. 13 - NIBC Bank NV announced that it has increased the tender cap in its cash offer for a potion 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 is now tendering for up to the dollar-equivalent of €616 million, increased from the original €500 million.

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.

If the total principal amount of euro-denominated notes tendered and accepted in the concurrent offer is less than €500 million, the company said at the time that it may, but is not required to, increase the tender cap of the dollar offer to up to the dollar-equivalent of €1 billion.

The dollar-equivalent of the cap will be calculated using the dollar/euro exchange rate at or around 11 a.m. ET on March 5. On Feb. 13, the exchange rate was $1.3438 per euro.

The offer for up to the dollar-equivalent of €500 million of government guaranteed notes will expire at 11:59 p.m. ET on March 5.

Holders who tender their notes by 5 p.m. ET on Feb. 19, the early tender time, will be eligible to receive the total consideration.

The total consideration for each $1,000 principal amount of fixed-rate notes will be 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 will be set at or around 10 a.m. ET on Feb. 20.

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

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

Holders who tender after the early tender time will not be eligible to receive the early tender payment.

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

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

NIBC said it is under no obligation to accept for purchase any notes tendered under the offer.

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) are the dealer managers.

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

NIBC is based in Amsterdam.

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