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Banco Mercantil do Brasil lifts tender offer cap to $35.56 million
New York, June 30 – Banco Mercantil do Brasil SA said it has raised the cap in its offer to purchase its 9 5/8% subordinated notes due 2020 to $35,564,000 from $30 million after the tender was oversubscribed.
Holders had submitted $67,093,000 of the bonds for purchase by the early tender date of 5 p.m. ET on June 26, according to a company announcement.
Following the increase in the cap amount, Banco Mercantil will accept tenders at the rate of 53.14% of the amount submitted for purchase. Tendered notes that would have resulted in a minimum denomination of new notes of less than $100,000 were rejected.
In total, the issuer accepted 14.23% of the outstanding notes for purchase.
Banco Mercantil also said that it is seeking approval from the Banco Central do Brasil to purchase the remaining notes tendered by the early tender date.
As announced on June 15, Banco Mercantil was offering $820 for each $1,000 principal amount of notes tendered by the early tender date. The total includes an early tender premium of $30 per $1,000 principal amount.
The expiration for the tender is 11:59 p.m. ET on July 13.
The company also will pay accrued interest to but excluding the settlement date, which will be June 30 for early tendered notes and July 15 for remaining tenders.
In its initial announcement, the bank said that if the offer is oversubscribed by the early tender date it will not accept any notes after the early deadline.
The bank also said that it reserves its right to increase the tender cap by up to $10 million.
The dealer manager is HSBC Securities (USA) Inc. (888 HSBC-4LM or 212 525-5552).
The tender agent and information agent is D.F. King & Co., Inc. (212 269-5550, 800 398-1247, fax 212 709-3328 or mercantil@dfking.com).
Banco Mercantil is a lender based in Belo Horizonte, Brazil.
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