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Published on 10/4/2023 in the Prospect News Emerging Markets Daily and Prospect News Liability Management Daily.

Banco do Brasil offers to buy from 9% junior subordinated notes

Chicago, Oct. 4 – Banco do Brasil SA, acting through its Grand Cayman branch, started an offer to purchase up to $1 billion purchase price of its $2.12 billion outstanding 9% perpetual non-cumulative junior subordinated notes (Cusips: 05958AAL2, P3772WAF9), according to a press release.

The bank is offering a total consideration of $1,013.75 per $1,000 note, inclusive of a $30 early tender premium that will only be paid to noteholders who tender by the early deadline. Otherwise, noteholders will receive $983.75 per note.

Interest will also be paid to the applicable settlement date. The aggregate total consideration excludes interest.

Tenders may be prorated.

The early deadline is 5 p.m. ET on Oct. 18, also the withdrawal deadline.

The offer will expire at 5 p.m. ET on Nov. 2.

If there is an early settlement date, it would be two days after the early deadline.

The final settlement date is on the calendar for Nov. 6.

The purpose of the tender offer is to increase efficiency of the bank’s capital structure and reduce its interest expense.

There is no letter of transmittal for the tender offer.

The dealer managers for the tender offer are UBS Securities LLC (212 713-4715), Citigroup Global Markets Inc. (800 558-3745, 212 723-6106) and J.P. Morgan Securities LLC (866 846-2874, 212 834-7279).

D.F. King & Co., Inc. is the information and tender agent for the offer (800 628-8528, 212 269-5550, bdory@dfking.com).

The government-owned bank is based in Brasilia, Brazil.


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