Thailand's TMB Bank buys $18.08 million perpetual securities in offer

New York, Oct. 6 - TMB Bank PCL said it accepted tenders for $18.08 million of its $200 million perpetual non-cumulative tier 1 securities and fixed the purchase price at $1,040 per $1,000 principal amount.

The bank said it received tenders for $21.45 million of the securities at or above the minimum price and has decided to pay the minimum.

In addition, it received valid instructions for another $300,000 securities from holders not eligible to participate. Those holders will receive $40 per $1,000.

At the meeting of security holders held on Oct. 6, the resolutions were passed and the trust deed amended so that TMB can redeem all the outstanding securities at par plus accrued distributions starting on May 3, 2011.

At its previous announcement on Sept. 24, TMB extended the early tender deadline to 7 a.m. ET on Oct. 4. from Sept. 21.

The offer began on Sept. 6 and expired at 7 a.m. ET on Oct. 4.

In addition to the tender, TMB was also asking holders to approve amendments to the terms of the securities, adding an issuer call on May 3, 2011 at par. Those who tender will be deemed to have submitted consent.

As of 7 a.m. ET on Sept. 21, the bank received tenders from holders of $15.8 million of the securities.

As previously reported, the tender price was set using a Dutch auction procedure. Holders could tender their securities at $1,040 to $1,080 per $1,000 principal amount.

Holders will also receive accrued distributions.

J.P. Morgan Securities Ltd. is the dealer manager.

TMB is a state-controlled bank based in Bangkok.

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