Dexia Municipal ends exchange for seven obligations foncières series

By Jennifer Chiou

New York, Sept. 17 - Dexia Municipal Agency announced that it opted to forgo issuing any new obligations foncières due September 2018 in its completed offer to exchange certain of its existing short-dated obligations foncières for three series of new securities.

The voluntary offer began on Sept. 8 and ended on Sept. 15.

Dexia was offering new obligations foncières due in January 2016, September 2018 and September 2020 at the choice of tendering holders.

The affected existing securities included:

• €2.15 billion of 4.25% obligations foncières due November 2010 with a spread of Euribor minus 71 basis points;

• €2.5 billion of 4% obligations foncières due January 2011 with a spread of Euribor minus 57 bps;

• €1.5 billion of 4.75% obligations foncières due June 2011 with a spread of Euribor minus 35 bps;

• €1.62 billion of 5.5% obligations foncières due October 2012 with a spread of Euribor plus 8 bps;

• €2.75 billion of 4.25% obligations foncières due February 2013 with a spread of Euribor plus 20 bps;

• €2 billion of 4.125% obligations foncières due June 2013 with a spread of Euribor plus 28 bps; and

• €1.93 billion of 3.875% obligations foncières due March 2014 with a spread of Euribor plus 28 bps.

Dexia was offering to issue up to €3 billion of each series of new obligations foncières. Neither of the two new series will be prorated.

The €1.25 billion of new 2.75% obligations foncières due January 2016 have a spread of 65 bps and priced at 99.984 to yield 2.755%.

The €750 million of new 3.5% obligations foncières due September 2020 have a spread of 85 bps and priced at 99.033 to yield 3.617%.

Participating holders had to tender a minimum of €50,000 of a single series of obligations foncières.

Holders received an exchange offer price of 100.687% for the 4.25% obligations foncières due November 2010; 101.22% for the 4% obligations foncières; 102.658% for the 4.75% obligations foncières; 108.05% for the 5.5% obligations foncières; 105.89% for the 4.25% obligations foncières due February 2013; 105.883% for the 4.125% obligations foncières; and 106.145% for the 3.875% obligations foncières.

Settlement is slated for Sept. 24. Holders will also receive accrued interest.

The joint dealer managers were Credit Suisse (44 20 7883 6748 or liability.management@credit-suisse.com), Deutsche Bank AG (44 20 7545 8011 or liability.management@db.com) and HSBC (44 20 7991 5874 or liability.management@hsbcib.com).

The information agent was Lucid Issuer Services Ltd. (44 20 7704 0880 or dexia@lucid-is.com. The exchange agent was BNP Paribas Securities Services (33 1 55 77 61 60).

The company previously noted that it was looking to increase the duration of its liabilities and to take advantage of market conditions through the offer.

Dexia Municipal Agency is a subsidiary wholly owned by Dexia Crédit Local, which is a wholly owned subsidiary of Dexia, a European bank listed on the stock exchanges of Brussels, Paris and Luxembourg.

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