Sompo accepts tenders for $2.85 million more 7% notes due 2034

By Sarah Lizee

Olympia, Wash., July 1 – Sompo International Holdings Ltd. announced Monday that it received valid tenders for $39,427,000 of notes in its previously announced cash tender offer for any and all of its $335 million outstanding 7% senior notes due 2034.

As previously reported, by the expiration time of 5 p.m. ET on June 26, the issuer had received valid tenders for $36,575,000 of the notes.

According to Monday’s release, after the expiration time it had received valid tenders for $2.75 million of the notes, and an additional $102,000 was validly tendered under guaranteed delivery procedures.

Sompo said it will accept for purchase all $39,427,000 of the tendered notes.

Settlement occurred June 27. The guaranteed delivery settlement date was set for July 1.

Notes tendered under guaranteed delivery procedures had to be delivered by 5 p.m. ET on the second business day after the expiration of the offer.

Holders who delivered a properly completed notice of guaranteed delivery and all other required documents at or prior to the expiration time and who validly tendered their notes at or prior to 5 p.m. ET on June 28 will receive the total consideration.

The total consideration for each $1,000 principal amount was set at $1,324.88, which was calculated using a fixed-spread pricing formula linked to the yield on the bid-side price of the Treasury reference security as of 2 p.m. ET on June 26. The reference security is the 2.375% Treasury due May 15, 2029, and the fixed spread is 205 basis points.

The company will pay accrued interest up to but excluding the settlement date. However, notes tendered through the guaranteed delivery procedures will not receive accrued interest from the settlement date through the guaranteed delivery settlement date.

Tenders may no longer be withdrawn.

Mizuho Securities USA LLC (212 205-7736 or 866 271-7403) and Wells Fargo Securities, LLC (704 410-4756 or 866 309-6316) are the dealer managers for the tender offer.

Global Bondholder Services Corp. (212 430-3774 for banks and brokers, 866 470-4300, contact@gbsc-usa.com or https://gbsc-usa.com/sompo/) is the information and tender agent.

Sompo is a Pembroke, Bermuda-based specialty provider of property and casualty insurance and reinsurance.

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