Novo Banco solicits consents for numerous notes issued by BES Finance

By Susanna Moon

Chicago, May 20 – Novo Banco SA, London branch said it is soliciting consents for a number of notes issued by BES Finance Ltd.

The company is seeking to amend the following outstanding notes:

• €600,000 5.19% fixed-rate credit-linked notes due Oct. 18, 2015;

• €1,400,000 5.19% fixed-rate credit-linked notes due Oct. 18, 2015;

• €1,950,000 5.19% fixed-rate credit-linked notes due Oct. 18, 2015;

• €76,311,000 6% fixed-rate credit-linked notes due Nov. 30, 2021;

• €29,841,000 6% fixed-rate credit-linked notes due Dec. 21, 2021;

• €20 million zero-coupon notes due Sept. 28, 2029;

• €229.86 million CMS-linked notes due Feb. 7, 2035;

• €61,987,000 zero-coupon notes due July 30, 2040;

• €102,857,000 zero-coupon notes due July 30, 2041;

• €66.28 million zero-coupon notes due July 30, 2042;

• €81,719,000 zero-coupon notes due July 13, 2043;

• €99,444,000 zero-coupon notes due July 13, 2044; and

• €93.08 million zero-coupon notes due July 13, 2045.

The company also is soliciting consents for the $449.2 million of outstanding $450 million 3½% guaranteed exchangeable bonds due Dec. 6, 2015.

The notes are guaranteed by Novo Banco.

Novo Banco will seek the consent of noteholders at separate meetings on June 11 in London to substitute NB Finance Ltd. for the issuer as the principal debtor under the relevant securities, according to a company notice.

As a result of an order by Bank of Portugal, the original guarantor for the notes, or BES, London branch, was automatically substituted by the guarantor. The order did not automatically substitute the issuer of the securities, however, which remain obligations of the issuer. The issuer also continues to be the issuer of a number of undated subordinated debt securities, which, following the order, continue to be guaranteed by BES, the company said.

The guarantor is seeking approval to put into effect the issuer substitution, the press release noted.

The consent fee will be 0.1% for consents given by the early voting deadline of 11 a.m. ET on May 29.

The solicitation agent is Deutsche Bank AG, London Branch (+44 20 7545 8011, liability.management@db.com).

The tabulation and information agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, Victor Parzyjagla / Sunjeeve Patel, novobanco@lucid-is.com).

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