BRMalls extends modified Dutch auction for 9¾% perpetuals

By Angela McDaniels

Tacoma, Wash., Dec. 23 - BRMalls Participacoes SA said the modified Dutch auction tender offer for up to $72 million of its $175 million 9¾% perpetual notes was extended to 5 p.m. ET on Jan. 21 from 11:59 p.m. ET on Dec. 23.

The offer is being carried out through BRMalls' wholly owned finance subsidiary, BRMalls International Finance Ltd.

The payout will be set using a base price of $500 per $1,000 principal amount of notes plus a clearing premium based on the bid prices submitted by tendering noteholders. Each bid price must fall between $500 and $600.

The company will also pay accrued interest.

If investors tender more than $72 million of notes, the issuer will first accept for purchase notes tendered at a bid premium less than the clearing premium.

The early participation deadline for the offer was extended to coincide with the expiration date, so each bid price submitted will include an early participation payment of $25 per note.

The offer began on Nov. 25 and is conditioned on the receipt of at least $72 million of notes, a currency exchange rate between the Brazilian real and the dollar of less than R$2.40 for $1.00 on the expiration date and the absence of certain decreases in specified stock market indexes. The offer is not conditioned on financing.

Citi (800 558-3745 or 212 723-6108) is dealer manager. Deutsche Bank Trust Co. Americas (800 735-7777) is the depositary and information agent. Deutsche Bank Luxembourg SA is the Luxembourg tender agent.

BRMalls is a Rio de Janeiro-based owner and operator of shopping malls.

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