EM-focused International Personal wraps tender offer for 11½% notes

By Toni Weeks

San Luis Obispo, Calif., April 3 - International Personal Finance plc said it took in tenders for €168,307,000 of its €225 million of 11½% guaranteed notes due 2015 in a tender offer that expired at 11 a.m. ET on April 2.

According to a company notice with the London Stock Exchange, the company will accept all notes tendered for purchase. The purchase price is €1,135 per €1,000 principal amount plus accrued interest.

As previously noted, the purpose of the offer was to proactively manage the company's upcoming debt redemptions and, along with a new notes issue, to lengthen its debt maturity profile.

The tender offer was conditioned on the issue of new notes. The company priced €300 million of seven-year notes at par to yield 5¾% on April 1.

"This is an important step in achieving our debt funding objectives," chief financial officer Adrian Gardner said in the notice. "The halving of the interest rate to 5¾%, a reduction of 575 basis points compared to the 11½% eurobond issued in 2010, continues the trend of materially reducing our cost of debt."

Following settlement on April 7, €56,693,000 of the notes will remain outstanding.

Citigroup Global Markets Ltd. (+44 20 7986 8969, attn: liability management group, or e-mail to liabilitymanagement.europe@citi.com) and HSBC Bank plc (+44 20 7992 6237, attn: liability management group, e-mail to liability.management@hsbcib.com) were the dealer managers. Citibank, NA, London Branch (+44 (0) 20 7508 3867, attn: exchange team, or e-mail exchange.gats@citi.com) was the tender agent.

The home credit company is based in Leeds, England, and caters to those in Poland, the Czech Republic, Slovakia, Mexico and Romania.

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